4 Major Steps to Remember When Purchasing Your First Home: Real Estate for Beginners
If you are thinking about buying a home, there are a lot of things that you should consider and be aware of. With so much information and so many opinions out there, it can the concept alone can be overwhelming – especially for someone that is new to the process. So instead of providing a long list of do’s and dont’s here is a quick 7 step guide to buying your first home.
Credit Check
As much as you might not want to think about it, your credit score plays a HUGE role in your being approved for a mortgage – and therefore, needs to be checked out, and repaired if necessary. Your credit score is a system that takes into account past credit history in order to determine how much of a risk you are as a borrower. If you have a low credit score, you are not alone. However, it may jeopardize your chances being approved for a low-interest rate – or any financing at all for that matter.
Know Your Budget
Buying a house is an expensive thing to do. Realistically, you have upfront costs, and then you have monthly mortgage payments. Prior to buying a home make sure that both of those costs can be covered – even if things change. This means taking into consideration that the maximum amount that the bank approves you for might not be the maximum amount that you should actually spend.
Find the Right Realtor for You
In today’s society, a lot of people are opting not to use a realtor for the real estate needs, while this is a personal choice, realtors bring a lot to the table, and provide a ton of knowledge especially for those unfamiliar with the way a real estate transaction works. When looking for a realtor, never feel bad for asking questions, and talking to a few. This will allow you to find a realtor that you are both comfortable with a confident in.
Conditions
While it’s nice to be able to go into a negotiation with a strong offer and no conditions, however, this is not always a possibility. Depending on your situation here are a number of conditions that you might have, including, upon the sale of your own home, and two of the most popular the conditions of financing and a home inspection. Out of all of the possible conditions the last two, the conditions listed here, approval of financing and of a home inspection are two of the most important.
Financing
If like most people, you are relying either on a bank or a private lender in order to afford your home, you need to make sure that you are actually approved for the money. Once that offer is signed and accepted – meaning all listed conditions are met – you are legally on the hook for that house – whether your lender comes through or not.
Home Inspection
If you are buying a newer home, some people feel they can avoid having a home inspection done. While this might save you a couple hundred up front, it could cost you thousands in the long run. A home inspection will provide you will more detailed information in regard to the state of your home, and any possible structural concerns that you should be aware of.