First Time Home Buyer | 7 Secrets You Should Know
Buying a Home has Great responsibilities. These responsibilities can be overlooked especially for a first time home buyer. The idea is to be sure you are thinking about all obstacles that can arise as you buy your home. I plan to briefly talk about 7 Secrets to Consider as a First Time Home Buyer and hopefully it will prepare you in the buying process.
The First step is to Keep Your Money Where It Is:
Do no move your money from one account to the other in the last three months before buying a home. We review the final two months and will ask you to source any large deposits and saying its just cash does not cut it. It can complicate the process if you have deposits that are greater than $500 that cannot be sourced which can possibly prevent you from becoming a first time home buyer.
Two is Get Approved for Your Home Loan:
Make sure to reach out to us to get your Pre-Approval. There is a big difference from a Pre-Qualification and Pre-Approval. We will make sure to view all your income documents to verify your pre-approval where a prequalification is usually based off your credit score and information you provided verbally.
Three is Give Your House a Physical:
Have you ever heard of the term LEMON? I’m sure you have, and just like cars, homes can have some issues as well. It is highly recommended to get an inspection before you order an appraisal on the home. The inspector’s sole responsibility is to be unbiased to both parties and let you know what issues the current house may have. Better to pay upfront rather than spend 1000s later.
Four is Your Buying a House and Not Dating It:
Do not get caught up in the fact that this house is the only one for you. Even if you do not get the exact house you wanted because financially, it didn’t make sense, know this, I have never seen a person sad on the day they close on their very own home.
Five is Stalk The Neighborhood:
You should go to the neighborhood at least a few times and check out what is going on morning, noon, and night. It’s good to go in the morning to see how your morning commute may be to work. Also, locate the local grocery store to see what kind of distance you have to the small things.
Six is The Art of Negotiating in your home:
Be careful about too low of a bid as the competition can be thick in some areas. You want to do your homework and research what house prices are selling for per SQ. Feet in the neighborhood. I wouldn’t compare it to other communities even if they are 1/2 mile away. It needs to be specifically your area. Work the angle of trying to get the closing cost covered that way you bring less to the table. Realtors are ideal for the negotiation part of the home buying process.
Seven is Avoid Sleeper Costs:
Make sure to think about other expenses rather than what your initial mortgage payment will be. Taxes and insurance can go up, and if this happens, your mortgage payment will go up. Appliances can go out and of course if this happens, this means more money out of your pocket or another personal loan that you didn’t expect to get. Be aware of the extra items when making a decision. This one usually can surprise your typical first time home buyer.