Thinking about buying a home?
Well, look no further! Here are 5 tips you need to consider when buying a home
Buying a home is one of the most significant investments a person can make in their life. It not only is a life altering decision but it can set you up for future wealth. It's a decision that requires careful consideration and planning to ensure the process goes smoothly.
Benefits of Homebuying
The home purchase has always been a critical aspect for the American dream as a home is usually valued at appreciation, with increasing value. Buying a house opens doors for federal and state tax breaks. It also allows you to build wealth through market appreciation over time. There are also benefits for getting assistance with your down payment or closing costs for the first-time purchaser. With these benefits in mind make sure to read these tips before purchasing a home.
1. WORK WITH A REAL ESTATE AGENT
A real estate agent is there to help you find the right home that fits your budget and meets your needs. They are equipped with a vast amount of knowledge that can assist you in making wise decisions about purchasing a home. According to the National Association of Realtors website, 86% of buyers recently purchased their home through a real estate agent or broker. A real estate agent is educated in many different areas and utilizing their services is key to helping you find your dream home.
HERE ARE SOME OF THE KEY ROLES of A REAL ESTATE AGENT
EXPERTS IN PROPERTY EVALUATION.
They evaluate the property's value and provide feedback to the buyer. This will give the buyer a good idea of what price to offer the seller for the home, the condition of the home, and any pertinent information impacting the property for sale.
EXPERTS IN THE HOUSING MARKET.
A real estate agent spends time each week evaluating the current housing market conditions. They are versed in various trends throughout the market. They are also directly connected with local a mortgage broker that provides insight on mortgage rates trends, various home loan programs, and how those things impact the broader market.
EXPERT NEGOTIATORS.
When it comes to buying a house you need a real estate agent in your corner when negotiating. They will handle all negotiations between you and the seller via the seller's agent. Negotiations can include but are not limited to price, inspection repair requests, low appraisal negotiations, and all pertinent timelines to the real estate transaction.
TRANSACTION MANAGERS.
Agents manage the transaction process, including paperwork and legal formalities, to ensure a smooth transaction. They coordinate with the seller's agent, escrow team, and the lender throughout the entire process.
FACILITATE PROPERTY INSPECTION.
Real estate agents help arrange property inspections with professionals and ensure proper disclosure from sellers. They assist with any negotiations as a result of the inspection performed.
CLOSING COORDINATOR.
Finally, a buyer's agent coordinates closing. This includes a final walk-through of the property, coordinating the transfer of utilities, and providing the buyer with keys on the day of closing.
2. DETERMINE YOUR BUDGET FOR YOUR HOME MORTGAGE
Before you start looking to buy a house knowing how much you can afford is essential. Create a budget that includes all your monthly expenses, such as utilities, car payments, and groceries. This will give you an idea of what you can afford on your monthly mortgage payment. You will also want to keep in mind that property taxes and homeowners insurance should be factored into your budget. This information is important to discuss with your lender when doing your initial consultation.
3. GET PRE-APPROVED THROUGH A MORTGAGE BROKER
It is essential to get pre-approved for a mortgage before buying a home. It can save you time and frustration. Viewing a home you cannot afford can be extremely disappointing. A pre-approval lets you know how much money you can borrow and your mortgage rate. Additionally, pre-approval shows sellers that you're a serious buyer and strengthens your bargaining position. Your trusted real estate agent can refer you to a mortgage broker if you do not have one already. The mortgage lender will determine the type of loan whether that be an FHA loan, conventional loan, VA loan, or USDA loan that best suits your needs and how much a down payment will be required. Your Mortgage lender will also discuss your minimum down payment requirements, debt-to-income ratio, and estimated monthly mortgage payment
EXPERT TIP: Mortgage Brokers will also look at Income And Employment Status
One factor a mortgage lender will look at is employment. A lender will require a working history (typically 2+ years in the same line of work) to establish a trend of stable income from your job. They will also view tax statements and have different required paperwork for self-employed persons.
4. DO YOUR DUE DILIGENCE
Once you find a home you're interested in, research the home's history and get an inspection. The inspection will identify any potential problems in the home, from faulty wiring to structural issues. This information can help you negotiate a better price or decide whether to walk away from the deal. A home inspection occurs after a mutually accepted offer by the seller.
Home inspections
A Home inspection contingency will be a key piece negotiated in your real estate transaction. This is an important part of every transaction as it allows the buyers to do their due diligence on the property.
5. CLOSING ON YOUR DREAM HOME
On the day of closing you will receive your keys after 5 pm and as late as 9 pm. Your real estate agent will help you coordinate this time. You will want to make sure you have moving coordinated, the utilities transferred and anything necessary to make that day run as smoothly as possible. What an exciting day! You get to move into your home! All that hard work paid off!
