If you’re looking to buy a home, especially for the first time, you know there is a lot to learn. Often times, first time home buyers make mistakes they wish they didn’t. Here are tips and advice from real estate experts that will help give insight before making the biggest financial decision of your life.
Tips and Advice from Real Estate Experts
See If You Qualify For Down Payment Assistance
Most prospective first-time home buyers get overwhelmed with the down payment portion of buying a home. It can be a defeating feeling trying to save what seems like an enormous amount just to secure the loan. But, did you know there are over 600 nationwide down payment assistance programs? Most of them are forgivable grants, which means the buyer can get up to $25,000 in some cities – and never have to pay it back. Talk with your lender about applying for down payment assistance and see which ones you qualify for. This could be what helps you buy a home!
It’s Not Just The Down Payment
While saving up for the down payment is a big part of buying a home; you need more that the down payment to purchase a home. A new homeowner will also be expected to cover closing costs and any earnest money. Earnest money is 1-3% of the loan that is your initial good faith offer. This money is returned to you if you do not end up getting the home. Closing costs include lender fees, an appraisal, inspections, taxes, and title. The best way to see where you stand is to talk with a lender to get a mortgage pre-approval letter. This will help you navigate the home buying process.
Don’t Let Emotions Control Your Purchase
Looking at homes is an emotional experience, as you picture your traditions, family life, and events in each home you walk through. But it’s important to steer clear of letting your emotions control your purchase. Most of the items that make a well-staged home look beautiful will leave when the seller moves. You should be looking for warning signs of home problems like water stains, cracks, rotted wood, electrical issues, and other subtle issues. Don’t let a nice couch dictate your decision to move into a home.
Be Realistic About Budget
Being realistic about budget is one of the top tips and advice from real estate experts. You may have found what seems like the perfect home but is a bit higher than your budget. It’s important that you are realistic about what you’re able to afford for your first home purchase. Rarely are first time home buyers able to purchase their dream home as their first purchase. A good way to stay realistic is to create a list of wants and needs for the new home. This will keep you focused on the important aspects of what will make your new home everything that you need.
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