You have decided to purchase a new home. You felt ecstatic and you’ll probably too emotional that you forgot that you don’t actually know what are the things you must know in home buying. Of course, you don’t want to go on to the battle unprepared. You do some careful research and came up to some important tips you must know before sealing the home deal.
Especially when you’re a first-time homebuyer, you need to be cautious to avoid getting ripped-off by crooks in the market, offering you home prices that are way above the market average, or offering you a severely damaged home for a brand new price. Consider this article written by Deborah Kearns in Bankrate. Read the entire article below to find out more.
Top Tips For First-Time Homebuyers
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Buying a house for the first time might seem like an unattainable goal as U.S. home prices soar and affordable homes are in short supply. With planning and discipline, though, that goal might not be as unreachable as you think.
First-time homebuyers who need to whip their finances into shape may have more success if they start planning early. Here are some smart money moves you can make today to get on track.
First-time homebuyer tips
12+ months out Check your credit (and work on it)
The first thing potential first-time homebuyers should do is pull their credit report and scores to see where they stand, says Ralph DiBugnara, president of Home Qualified Lending in New York City.
As you check your credit scores and reports, look for any errors or past-due accounts that might have gone to collections. These liabilities can create roadblocks when you apply for a home loan. If anything is amiss, contact the creditor to see if you can sort it out, DiBugnara says.
Buying a house for the first time might seem like an unattainable goal as U.S. home prices soar and affordable homes are in short supply. With planning and discipline, though, that goal might not be as unreachable as you think.
First-time homebuyers who need to whip their finances into shape may have more success if they start planning early. Here are some smart money moves you can make today to get on track.
First-time homebuyer tips
Step 1. Check your credit (and work on it).
Step 2. Determine a budget.
Step 3. Get your assets in place.
Step 4. Shop multiple lenders.
Step 5. Hire a real estate agent.
Step 6. Put contingencies in writing.
Step 7. Keep the status quo in your finances.
12+ months out Check your credit (and work on it)
The first thing potential first-time homebuyers should do is pull their credit report and scores to see where they stand, says Ralph DiBugnara, president of Home Qualified Lending in New York City.
As you check your credit scores and reports, look for any errors or past-due accounts that might have gone to collections. These liabilities can create roadblocks when you apply for a home loan. If anything is amiss, contact the creditor to see if you can sort it out, DiBugnara says.
Use myBankrate to keep tabs on your credit for free. You can get a free copy of your credit report each year by visiting annualcreditreport.com.
Don’t just check one credit bureau’s report; you could get a false sense of confidence. Instead, get information from all three agencies, and keep periodic tabs on your activity, DiBugnara advises.
“If you’re not already signed up for a credit monitoring service, this is a good time to do it,” DiBugnara says. “You’ll get notified if your credit score changes, or if there’s suspicious activity on your report.” Click here to read the rest of this post…
As mentioned earlier, first-time homebuyers must practice extreme caution to avoid getting scammed by those who are trying to take your money from you. There is basically a handful of information online first-time homebuyers must read just to keep themselves knowledgeable on how real estate buying works.
If you’re looking for some good and very useful information about real estate buying, then this article written by Kelly Phillips Erb in Forbes.com could be the one for you.
10 Things You Absolutely Need To Know About Buying A Home
Ready to buy a home? Buying a home is one of the most significant financial decisions you’ll make in your lifetime. From figuring out pricing to why you should consider a realtor, here are 10 Things You Absolutely Need To Know About Buying A Home:
1. Use a trusted realtor. We all know that realtors get a cut of the sales price of a home which makes some buyers hesitant to use a realtor: they believe it drives up the overall cost. Keep in mind that the seller, not the buyer, pays the commission. Brooke Willmes, real estate agent at SPACE & COMPANY in Philadelphia, says that potential buyers should keep in mind that a listing agent (the agent representing the seller) doesn’t protect your interests and “that agent would simply pocket both sides of the commission.” That means that you’re not saving money. A savvy realtor who works for you can protect your interests and guide you through the buying process – from negotiating a price to navigating home inspections.
2. Remember that a house purchase involves a contract. When you’re buying a house, there are papers to sign. And more papers to sign. Many of those papers – which are actually contracts – look like “standard” home buying contracts with no room for negotiation. That isn’t true. Contracts are meant to be negotiated. You don’t have to sign a standard agreement. If you want more time to review your inspection, wish to waive a radon test or want to make a purchase subject to a mortgage approval, you can make that part of the deal. That’s where a savvy realtor can help. See again #1.
3. Don’t necessarily buy for the life you have today. Chances are that buying a house will be one of the bigger financial commitments you’ll make in your lifetime. Before you agree to buy what you think might be your dream house, consider your long-term plans. Are you planning on staying at your current job? Getting married? Having kids? Depending on the market and the terms of your mortgage, you may not actually pay down any real equity for between five and seven years: if you aren’t sure that your house will be the house for you in a few years, you may want to keep looking.
These are indeed very important information for homebuyers. Making one of the most important financial decisions in your life requires due diligence, as well as thorough study about the decision and not just relying on your gut feelings and emotions. Set a priority of what you must do before deciding to seal the real estate deal. Konrad Sopielnikow wrote an article in FortuneBuilders on what are the most important things to consider when buying a home.
The Most Important Things To Consider When Buying A Home
When mulling over the things consider when buying a home, the process can become increasingly daunting. There are, after all, a lot of things to consider when buying a home. For starters, American economists have scrutinized mortgage interest rates ever since the housing recovery started to gain traction. When it came to buying a home in 2015, experts predicted that mortgage rates would surpass five percent, yet interest rates remained below four percent. While higher than what we had become accustomed to, that was still historically low at the time. Nevertheless, low interest rates have helped many prospective homeowners actively participate in the housing market.
According to Casey Fleming, published author and mortgage broker, “Small changes in interest rates don’t make large changes in your payment.” While fluctuations in rates could change monthly premiums, they should not be viewed as the most important factor when purchasing a home. There are simply too many things to consider when buying a house to narrow down your own criteria to one or two factors.
What To Consider When Buying A House
Image Courtesy of FortuneBuilders
Duration Of Stay
While often overlooked, the amount of time you plan to spend in the home is one of the most important factors to consider when buying. Essentially, does the duration of stay make it more economical to buy than rent? Of course, there is no simple answer for such a generic question. Each market is different, and will require a subsequent analysis to determine if buying is the right choice. That said; it is entirely possible to predict whether or not the time you plan to spend in the house warrants its purchase. “On average, it takes four to seven years to break even on a home, where you’ve got enough appreciation where it can pay you back for the cost of the transaction and cost of ownership,” Fleming says. “If you’re thinking about buying a home, selling it in two years and think it’s going to be cheaper than renting, it’s very unlikely to be.”
Job Security
The expansion of the economy can improve employer sentiment. However, that does not mean that job security doesn’t weigh on the minds of those that are fortunate enough to be working. How could it not? We are still recovering from one of the worst recessions in American history. Trepidation abounds. Having said that, the last thing you want to think of when buying a home is job security. Uncertainty will almost certainly ruin any prospects of buying a home. There is perhaps nothing worse then buying a home, only to discover that you are unemployed shortly after. So before you make a 30-year commitment to mortgage premiums, make sure you are secure in your employment position.
Down Payment
The down payment on a purchase remains one of the biggest obstacles in the way of potential buyers. Millennials, in particular, have found it difficult to save up a lump sum of money. Not only did the millennial generation graduate from college during one of the worst recessions in American history, but they are also saddled with student loan debt. If that wasn’t enough, underwritings have become more difficult to work with and rents have made it utterly impossible to save up enough money for a down payment. See full post here…
Whether you are a first-time homebuyer or not, you basically need to do thorough research about the real estate market such as the trends, inflation, average home buying price, etc. for these will help in your decisions later on.
However, if you aren’t that confident on your knowledge, skills in closing your first home buying deals, then we at Dependable Homebuyers can help you in your quest to owning your first home that suits your budget. To learn more, visit our website https://www.dependablehomebuyers.com and let’s get started.
Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
(443) 266-6247
