Tips to First-Time Home Buyers
By Payal Panjwani
There is no doubt that every American holds a vision to acquire a home of their own. This article gives you an insight on how to go about acquiring that home you've always wanted. This is a guide that may be of use to many first time home buyers.
Now some of us know that for many, home buying may be a complex and a daunting job. Home buying involves a whole lot of procedures which require some amount of research. Here below are a few helpful tips on buying a home for the first time:-
Using Available Resources
You need information in hand before going out scouting for homes in the market – information with regard to the prevailing market rates, taxes, neighborhood, etc. There are many sources from where you could obtain such data but the most effective and useful is the internet. The internet not only assists you in understanding the prevailing market conditions without the services of a real estate agent but also provides as a useful resource for locating homes on your own.
Budgeting for Costs
This emphasizes on the willingness and ability to spend. It’s wiser going about your home purchase with a pre-approved loan as it not only helps in your home negotiations but also keeps you in check with your spending ability. It is also advisable for you to try and pay at least 20% as down payment as it would avoid you from having to shell out more on what is known as PMI - private mortgage insurance – (an additional cost incurred on the mortgage to protect the lender incase you default on the loan).
It is more advantageous in searching for a home during the winter season as people are busy during this holiday period and hence there is less buying demand. This is where one can utilize the opportunity to pick a home and also underbid on the asking price.
Smaller Mortgage Companies
It is very important that one takes into mind the profile of the specific mortgage company that one is handling with. Most people end up with the big companies only because of its image and popularity created, where in fact the smaller companies are more efficient in terms of customer service as well as their rates. This is due to their minor investment in advertising and such related expenditure. Hence it is advisable to go for smaller mortgage companies instead of bigger ones.
Lastly and most importantly one must have a look-over the house as a final check before making the big decision. Last-minute inspections are always required just to avoid any later discovery of damages or leakages in the house. There have been some who after investing millions of dollars later uncovered the damages that came along with the house. Therefore inspection is a must!
Conclusively, it may be noted that the complexities involved in purchasing a home for the first time would be much simpler if one were to take heed of the advice mentioned above. All in all, here’s wishing you wishing you a happy home buying experience!
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