Being a first time home buyer can be overwhelming. Here are my tips that can make this adventure an easily navigated one.
1. HIRE A KNOWLEDGEABLE AND EXPERIENCED REAL ESTATE ATTORNEY. This is probably the biggest purchase of your life. Don’t you want to be protected legally should anything go awry? If you want peace of mind you should consider contacting me.
2. Explore your mortgage options and down payment options:
There are many of different types of loans. Conventional mortgages conform to standards that are set by government sponsored entities such as Fannie Mae and Freddie Mac. These mortgages require as little as 3% down. FHA loans are through the Federal Housing Authority and allow down payments as low as 3.5%. VA loans are those guaranteed by the Department of Veterans Affairs and sometimes require no down payment.
You can put down a higher down payment which will give you a lower monthly mortgage payment.
There are different lengths for each mortgage. If you want the smallest mortgage payment possible, you can opt for a 30-year fixed mortgage. If you can afford a larger monthly payment, you can get a lower interest rate with a shorter term, such as a 15 or 20 year loan. You can also choose an adjustable rate mortgage which is riskier but offers a low interest rate for the first few year.
You can use a mortgage calculator to determine which mortgage is right for you.
3. Check your credit and try to avoid any new activity:
When you apply for a mortgage loan your credit is one of the main factors determining whether you will be approved. Your credit will help determine your interest rate and possibly the loan terms. You should check your credit before you begin looking for your home. Dispute those charges that you disagree with as those could be dragging your credit down. You may want to try and pay down your outstanding debt as this will help improve your credit. In order to keep your score static after applying for your mortgage, avoid opening any new credit cards or applying for other loans.
4. Pick the right realtor:
You will be working closely with your realtor so you want to make sure he/she is the right fit. Is he/she knowledgeable about the area, is he/she motivated, does he/she listen to your requests?
5. Do your research when it comes to the neighborhood and the type of home you want:
Will you like to live in the neighborhood? Check out the schools, drive through the neighborhood, check the crime statistics. Do you want a single family home with a yard? If you want less maintenance maybe a condominium or a townhouse is the way to go. Explore your options
6. Go to a lot of open houses:
Make sure you see a lot of different homes before making up your mind. Pay attention to what you see and make notes on each house so you can compare them later. Pay attention to the overall condition of the home. Will the home need a lot of repairs, can you afford that? Do not be afraid to ask a lot of questions about the home such as when it was built, how old the appliances are and how old the air conditioning and heating systems are. If other people are viewing the home and you are unable to ask your questions, schedule another visit so you can ask them privately.
As a first time home buyer you want to make sure you will get to the closing where you will actually get the keys to your new home. I will help you get there!
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