Buying a first home is often fraught with uncertainty and stress. The home buying process may be made easier and less stressful with a few tips from the first time buyer.
1. Don’t Stretch Your Budget:
Figure out how much you are able to comfortably afford before looking for a home. A $1000 a month rent payment does not mean that you are able to afford the same mortgage payment. Owning a home has increased costs over a home. Taxes, insurance and unforeseen maintenance costs will add up to higher expenses. Consider all of thee factors when deciding on a home budget. A mortgage calculator will help determine these costs.
2. Find A Realtor:
Find a reputable realtor. Real estate agents will help a prospective buyer find the perfect home. Good realtors know the local marketplace and whether the house is a good price. They will be aware of what is available and how much is a fair price for the amenities within the home. Seasoned realtors will help walk the home buyer through the negotiating process to ensure the best possible purchase price.
3. Buy A Foreclosure:
Foreclosure properties are available with huge savings. Buying a foreclosure often allows a buyer to purchase a home in a better neighborhood and receive more home for their money. Foreclosures will often have instant equity as soon as the purchase is completed.
4. Obtain Mortgage Pre-approval:
Have financing in place before stepping foot into any home. Pre-approval is different from pre-qualified. Pre-approval means that financing up to a set amount is guaranteed by the lender. Pre-approval letters from the mortgage company offer the buyer an advantage in the negotiating point of the home purchase. Potential buyers will be able to show they are serious and have funding in place. This allows them leverage over another potential buyer who does not have mortgage pre-approval.
5. Have A Home Inspection:
Home inspection is a vital part of purchasing a property. A good inspector will look for a variety of issues to help determine if there are any problems within the home. Issues found by an inspector will allow the buyer the ability to renegotiate price. Buyers may walk away from the house if severe issues are discovered and they do not feel capable of dealing with the problems.
6. Remember Closing Costs:
First time home buyers need to remember closing costs. These fees typically range from two to four percent of the total loan amount. Closing costs depend on how many fees the lender is charging for the loan. Some realtors may be able to help a buyer negotiate closing costs with the seller paying some or all of these fees. Use a closing cost calculator to help determine your closing costs.
Taylor Morrison puts 100 years of experience into every custom built home and was has been the top private home builder in the United States since 2009. Learn more about Taylor Morrison new homes in Sacramento and new homes for sale in Phoenix