The decision to buy a house is one of the biggest you’ll make in your lifetime. Before you grab a map and start scouring the neighborhoods in your town for your dream house, there are some things you need to consider. Check out these important tips for first time home buyers that can help you plot a course before setting sail on your home buying adventure.
Tip One – The Importance of a Credit Check
Even if you think you know what your credit score is at this time, request a credit report from all three of the major reporting agencies. Checking these reports will alert you to anything that is out of place or incorrect. If you notice something that shouldn’t be a part of the report, contact the agencies to resolve the matter quickly. Settle up any accounts that show up on your report in a negative light. Doing this before you begin your search for a house may save you time and embarrassment in the future.
Tip Two – The Importance of Savings
You may know that you’ll need a substantial down payment to purchase a home, but did you know that you’re likely to need money for other things? As a buyer, you may be required to cover the closing costs. These costs include things like attorney fees and inspections. Keep in mind that you may need money to cover repairs or renovations once you purchase the house. It’s a good idea to have savings set aside to cover the down payment and any other necessary expenses.
Tip Three – The Importance of Pre-Approval
Once you’ve gotten your credit score in good shape and saved a substantial amount of money, you’ll want to shop for a home mortgage lender. Getting pre-approved for a home loan is a good idea for several reasons. First, it lets you know exactly how much house you can afford. This will save you time and keep you from building up your hopes for a home that is outside of your financial comfort zone. Second, it lets home sellers know that you are serious about purchasing a home. This could give you an advantage if a bidding war begins.
Tip Four – The Importance of Lists
Before you can begin searching for your dream house, you need to know exactly what you want and need. Create a list of must-have items that are non-negotiable when it comes to your search. This list may include things like number of bedroom, proximity to work, or type of property. Next, create a list of items that you would like to have but are willing to compromise on if the need arises. Items on this list may include things like a pool, proximity to a park, or fenced in yard. Having these lists will help as you move on to the next phase.
Tip Five – The Importance of a Real Estate Agent
Once you’ve prepared your lists and have a good idea of what you’re hoping to find, it’s time to secure a real estate agent to help you during the home buying process. Choose a real estate agent who cares about your needs, communicates at a high level, and knows about the area in which you wish to live. A real estate agent has access to current market information. When you add this information to their extensive knowledge and experience, and it’s easy to see why having a real estate agent on your side is a wise decision.
Tip Six – The Importance of Negotiations
Once you’ve chosen a house, you’ll make an offer. Your real estate agent will help with this part of the home buying process. Be prepared for the fact that you may place an offer on a house that gets several other offers. This could cause a bidding war that calls for negotiations. Listen to the advice given by your real estate agent at this time. They are skilled negotiators who understand exactly what is needed. Be realistic, however, and know when it’s time to walk away and look elsewhere for your dream house.
Buying your first home is an exciting time in your life. Do everything you can to ensure that the home buying process goes as smoothly by considering the important tips we’ve shared with you. Manage your credit, save money, create lists, and seek the help of a qualified real estate agent to help make your home ownership dreams come true.