Buying a home is a big deal and you have to make an informed decision before you go and invest your current and future life savings into a property, because you also need to ensure that one day you can sell your home online.
Always make sure you conduct thorough area research before you buy it. This will give you an idea of how much the area is worth and the kinds of prices you can expect to encounter. When you start looking at home make sure to ask for an energy performance certification to give you an idea about the building’s energy efficiency.
When you are looking at a property make sure you always take someone else along to make sure you get a second opinion and a different perspective. A daytime appointment will ensure you have decent light to view the property in.
Don’t overwhelm yourself by looking at too many properties in one day and make sure you have enough time to have a good look. Ask any questions you want to know the answers to and don’t be afraid to be direct as you are going to be spending a decent amount of money and you need to make sure it’s an educated decision. Also, try not to feel pressurised by the agent if you don’t like the property.
Make sure you find out what is included in the sale as sometimes furniture, fittings and outdoor features may come as a package. Get an idea of what you can expect to pay monthly for utilities so you can budget accordingly and work out if you will be able to afford to live there.
Also, be sure to find out if any alterations have been done to the property and if any of the rooms have been remodeled. It might also be worthwhile to do a little research on your neighbors to find out what you can expect.
While you are looking at the house think about any work that might need to be done and what the cost would be. Consider practical matters like whether your furniture will fit in the house and if there is enough space for it all. Look for major problems like cracks in the building or damp. Be on the lookout for signs like peeling wallpaper, bubbling paint, mold, or watermarks.
Consider whether the house has enough storage facilities to accommodate your needs and if there are enough plug points. Think about the space and how homely it would be with your belongings in, and if it feels like somewhere comfortable for you to live in. also think about how easy it would be to sell your home online when you are ready to move on again.
Practical Things to Consider When Buying Your First Home
If you are interested in buying your first home, there are several issues that you could run into along the way. Having a firm understanding of what to expect is critical. Here are a few tips to keep in mind when buying your first house.
Get Pre-Qualified or Pre-Approved
Before you ever get out into the market and start looking at actual houses, you need to talk to a mortgage lender first. You need to get either pre-qualified or pre-approved before doing any shopping. By getting pre-qualified, you can figure out approximately how much you can afford to pay for a house based on your salary and credit information. When you get pre-approved, the lender tells you that you are ready to get a mortgage whenever you need one. They verify all of the information in your credit profile and with your income. This process is a little bit more involved than getting pre-qualified.
Work with a Buyer’s Agent
Getting a good buyer’s agent can make your life a lot easier when you are shopping for a home. With a buyer’s agent, you will be able to zero in on the house that you want and can afford. A buyer’s agent will sit down with you and find out exactly what kind of house you want. He may ask you for some specific features in the houses that you are looking for. Then he can show you some houses that meet your criteria and help you to see what is available in your area.
Get Less Than You Can Afford
When choosing a house to buy, you will probably be tempted to spend a little bit more than what you can realistically afford. Just because you could qualify for a certain amount of mortgage, that doesn’t mean that you need to pay that much. Only you know what you can comfortably afford. As a general rule, you should try to get a house that you can easily afford. Leave a little bit left over every month, because there will be unexpected expenses that you did not plan on. You might have a child unexpectedly after you buy your house. You could run into problems with the property that makes you come up with money that you don’t have. In these types of situations, it can come in handy to have a little bit of extra money from one month to the next.
Take Advantage of Your Status
Since you are a first-time homebuyer, you should take full advantage of it. There are several programs out there that are designed to help first time home buyers get into the market. When you are talking to a mortgage lender, ask if they offer any type of first time home buyers loans. In some cases, they may be able to offer a lower down payment or a lower interest rate because of your status as a buyer.
Get Your Financial House in Order
Today’s first-time homebuyers face stiff credit requirements. Before the hunt for the ideal home can begin, it’s essential to get your financial house in order. That process starts with a careful examination of credit reports and credit scores. The credit reports should be clear of any defaults. A strong credit score will not only make it easier to secure a home loan but will help ensure that you get the best interest rate as well. Paying off recurring bills may improve your rating.
Creditors look for stability as well. Prospective homebuyers should remain in one job for at least a year before thinking about buying a new home.
Tally Up Expenses
The search for a new home typically begins with calculations about the down payment and monthly mortgage payments, but other expenses need to be examined as well before taking the homeownership plunge. The list of new expenses that new homeowners will incur begins with property taxes, home insurance, and monthly homeowner association fees.
Utility bills are typically higher for owners than renters as well. Protecting the value of the home with regular upkeep means considering maintenance costs for all aspects of the home, from caring for the lawn and landscape to servicing air-conditioning, plumbing, and electrical systems.
You have to assess your financial standing. You need to make all the necessary calculations to be able to know exactly what you can afford. It has become increasingly difficult for first-time buyers to get a foot in the market as a home loan is a difficult mountain to conquer.
You need to remember that if you can afford your current rent payment it does not mean you will be able to cover the mortgage payment of the same amount for your new home. There are more costs involved than just your mortgage. Property taxes are fees that need to be paid over and above your mortgage. Then there is insurance, maintenance costs, and structural repairs, etc.
Shop Real Estate Agents
Buying a home is complicated enough without having to undertake the entire process alone. Most experts recommend that first-time buyers take advantage of the services that realtors offer. When it comes to choosing a real estate agent, personality matters. It’s important to find an agent who is on the same wavelength, someone who communicates well and understands the homebuyer’s expectations.
Fortunately, according to a National Association of Realtors survey, two-thirds of homebuyers report that they are so satisfied with their realtors that they would use the same realtor again in the future.
Analyze the House Specs
The specs of the house should also be analyzed. If you are looking for a house with a certain size yard, you should pursue a house that fulfills your desires. There is no point in buying a two-bedroom house if it is not big enough for you. You should be happy with all the features except if you plan on renovating and have calculated those costs into your planning.
Research the Local School
If you have kids, you should probably research the local schools and make sure you are happy with their standards. Base your purchase on what form of commuting you are planning to use, like whether the kid’s a cycle/walk to school or how far is it from your work and grocery stores, etc. These are all things to consider before you make your final decision.
Shop Neighborhoods
Every homebuyer has a list of “must-have” features that they want in a new home. Homebuyers can simplify their search by sticking to neighborhoods that are likely to have those features. While it’s important to remain open to compromise, people should never settle for a home that will make them miserable because it lacks certain features. It’s a good idea to start monitoring home sales in potential neighborhoods weeks or months before actually making bids. This gives you a clearer notion of property values.
Check out the neighborhood and make sure you know who the neighbors are, and what they are like. You don’t want to end up next to noisy neighbors who keep you up at night. If you have a family, safety will be a primary concern. You don’t want to end up fearing for your family’s safety every day.
As important as it is for first-time buyers to carefully plan and prepare for what will likely be the largest financial investment of their lives, it’s important to take some joy from the experience as well. The best home-buying tip may be to keep the end goal clearly in your sight: owning a place to call home.
There are also some programs out there that will give you a down payment for your home. With these programs, you can get money to use for the down payment on your house without having to worry about paying it back at any point in the future.
A Simple Guide to Mortgage Options for First Time Home Buyers
People buy property for many reasons. There are those who will see their property as an investment of some kind, and will therefore buy a good house in a good area with the hope of selling it later and making a profit. Others are interested in purchasing a home so that their family has more security. Single people may decide to invest in an apartment in the city.
The type of property that you choose to buy is therefore going to depend on your needs and what your long-term goals are. If you are interested in buying a property yourself, then it is a good idea to take a look at what mortgage options are out there. Most people will need to take out a mortgage in order to buy a property for themselves. If you are interested in buying a property, then make sure to take a look at how much you can spend and what sort of mortgage option is best for you. In order to do this, you can have a look at the different Intelliloan products that are available for customers today.
Conforming Fixed 30 Year Loan
With this type of loan, a down payment as low as ten percent is possible. Those deciding to go for the Conforming Fixed 30 Year Loan will be able to purchase a condo, family house, or townhouse for up to $625, 500. This is the type of loan that a lot of people will choose, as it will usually give them the option of having a place to live for several decades, providing the family with a secure place.
Conforming Fixed 15 Year Loan
This type of loan is similar to the previous type mentioned, and will also have deposits as low as ten percent. Payment is going to be up to $625, 500 as well. The difference between this type of loan and the previous conforming fixed loan is that you will be able to get rid of your debt a lot faster. For those who are sure that they can pay it off, this is probably a better choice and will provide you with the results that you need. Another great thing about this loan is that the interest rates are going to be quite low.
Other Loans
There are two other types of loans that you may be interested in as well. These include the 5-year and 3-year ARM. They provide loans of up to $625, 500 and offer low interest rates for the first five or three years respectively. These down payments are incredibly low, usually reaching about 3.5 percent. These types of loans often suit those who know that they can pay off their loan quite fast and will therefore be an interesting choice to make if you are interested in getting a property as soon as possible.
While buying a new home can be daunting, knowing your options will allow you a little more freedom. You will be able to decide exactly what type of loan you can take out in order to suit your own specific needs.