I've lost track of the hundreds of the total number of new, first time buyers I've worked with over the years. It's one of the most rewarding parts of my business.
We spend so much time in the car looking at houses and talking about the process. So I thought I'd boil it down here for you too. In case you want to read up first!
The Home Buying Process.
When buying a home, having objectives that you want a specific home to meet should be a priority, especially for first-time homebuyers. These set objectives will help you chose the right home by filtering out home choices that do not meet the goals you've set.
One must be financially prepared even before making the decision to buy a home. Either you are purchasing the home via mortgage or cash. Most homeowners pay for their homes via a mortgage. If you cannot meet the periodical payments, you will end up losing your home and drown financially. Some mortgage payment terms will leave you with very little at the end of the month. This will drain you financially and mentally, and you end up regretting agreeing to such terms.
Your credit history is a crucial influencing factor when it comes to mortgages. If you have a poor credit history and have many pending bills that have been unpaid for a long time, you might not get the mortgage. If you happen to get the mortgage, the interest rate will be exorbitant. Getting a mortgage with a poor credit history might be convincing, but you will regret it in the long stretch.
Owning a home via mortgage means you have to insure it until the mortgage is paid off. Insurance, among other issues such as running costs, are ignored by homeowners. This is because they are only focused on buying the home and getting the key to it. One must have some extra income to cater for the running costs that the home requires, among other issues.
Home inspection by a certified home inspector should be done on the property. A home inspector fully inspects the property and advises a home buyer accordingly. Then the home buyer makes a decision based on the home inspector's feedback. Estimates for repairs are done, and negotiations are made between the seller and buyer considering the price. This is done on a couple of home choices that the buyer has.
Weigh mortgage rates from different lending institutions. For some institutions, you can lower the mortgage rate by paying points upfront. This is good if you have some money in your reserves, but it ensures permanent or long-term residency in your home. The only downside is you'll have to pay a little bit more for this to be approved.
After your mortgage application is accepted, narrow down your home choices. According to the home inspector's evaluations, approach the sellers and negotiate the best price best suited for you and according to the home inspector's evaluations. Pick a home that suits your personal touch and re-inspect appliances, electricals among other essentials.
Once all of these check out and the price is right, sign the paperwork, move in and enjoy your new home.
And remember, when we work together on the purchase of your first home, you have me and my whole team there to support you. We'll hold your hand, keep you excited and calm your fear, all the way through the process.