Buying a home for the first time can be very exciting and at the same time a little scary. People tend to fear the unknown and because of the lack of information available on this subject, purchasing a home is uncharted territory for most potential first time home owners. The best way to remedy this situation is to do a little research to better understand the process of buying a house. Here are 5 tips that will help you get the most out of your first home buying experience.
1.Understand your Credit
Your credit report is the go to guide any lender will use to decide weather or not to approve your loan request and how much interest you will pay for that loan. There are some small, but important things you should do to get a better rate. You should avoid getting new loans, or moving your money around a few months prior to getting pre- approval. You may also want to keep your credit card balances down, but not paid off as this will show you have a good history of making payments. Also, make sure to keep track of your credit to make sure its in good condition, all the way up to your home purchase. You can obtain a copy of your credit report once a year for free and taking advantage of that is a must.
2. Use Your Head not Your Heart
This buying philosophy really applies to anything you spend money on. Emotion is a fantastic part of being human, but when it comes to buying a house can cost you a lot of money and grief. You should never buy a house without being sure you explored all options even if this means temporarily skipping over your “dream” house.
3. Bid with Knowledge
When you bid on a new house you should consider two things, what your price range is and what the house is worth. There are some other factors to keep in mind as well, like what the average home in the neighborhood is worth. You also want to make sure your offer is not too high to avoid overpaying and if your initial offer is too low it may offend the seller and remove you as potential buyer all together.
4. An Inspection is a Must
An inspection may be the best thing you could do before buying your first home and this step is often overlooked. The most common reason buyers skip this necessity is the cost, but end up paying for it in repairs and much more after the home is purchased. An inspector is a non biased resource and will give you a good, honest answer about any problems that a seller or realtor may be keeping to themselves.
5. Meet your Future Neighbors
So you completed your purchase, you got an amazing deal, and you are standing proud because you accomplished your home buying goal. You then, realize you have some neighbors that are less than desirable, the neighborhood is less than appealing, and the schools are less the average. This is actually a common problem that can be avoided by simply doing your homework prior to the purchase. There are websites that let you see the crime statistics of your potential neighborhood and the success rate of the local school districts. This, along with driving around your neighborhood can help you make an educated decision about the area you want to live.
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Annabelle Sistio is a Marketing Assistant for a Glen Cove Rentals company.