Buying a home can be an exciting, yet nerve-wracking time for first time home buyers. It is exciting to know that you will be buying a home; where you will have enough space to bring back the valuable thing you that have placed on storage units near you and a place to begin a new life. It can be stressful, however, to negotiate the world of real estate and to spend that many zeroes.
- Credit Score:Know your credit score and what is on your credit report. A good credit score not only gets you a better interest rate on your home loan, but it also can be the difference between getting approved for the home of your dreams or not. If you are not familiar with your credit report, you can get a free copy from any of the three credit reporting agencies. Look it over carefully. More often than not, there are either mistakes on the report by a creditor or, worse, a bill that you completely forgot to pay. Fix all the issues before trying to get a mortgage for a new home.
- Pre-Approved Amount: Do not start shopping until you have met with a mortgage broker or representative from your bank and received a pre-approval for your purchase. A common mistake is to look at houses before being approved. This can only lead to disappointment.
- Buyer’s Agent:Work with a buyer’s agent. There are no exceptions to this. A buyer’s agent is a special type of Realtor that is working exclusively for you and your best interests. In fact, hiring a good buyer’s agent costs you, the buyer, nothing. Their fee is paid out of the seller’s proceeds. More accurately, the commission that the seller agreed to pay is split between the seller’s agent and your buyer’s agent. A good buyer’s agent can not only save you money, but help you know when to walk away, if necessary.
- Home Inspection:You must have a home inspection. It is not required by law, but it is probably the best money you will spend during the home buying process. For a few hundred dollars, a certified, experienced home inspector will meet with you at your prospective home for a few hours and examine every inch of the place. It is their job to find any major issues with your new home’s mechanicals and foundation. No home is perfect, expect a few minor issues. You want to know if there are hidden leaks in the attic, a sinking foundation, or other issues that are not noticeable to the average layperson 15 year vs 30 year mortgage.
Knowing what you can buy and who you should buy it with is important to ensure that you make the best decision possible for you and your family in the home buying process.