made their first purchase and they are able to pull it through. If you will only do your homework, you will surely have the best chance of looking for a house that has a price tag that you can afford. The big astonishment for a lot of first time home buyers is that they have to go through steps before they can start to look for a house.
1) Know your financesBefore you fall in love with your dream house, make a serious auditing on your savings. First, look at bank account. Do not consider purchasing a residential real estate if you only have three to six months savings for your living expenses. Determine how much will be left in your savings as well as investment accounts which can be enough to pay the down payment. Then, know precisely your monthly expenses because it will tell you the amount that you can apportion to a mortgage expense.
2) Know the benefits of buying a home for the first time
Before you schedule a meeting with a lender, it is ideal to know what a good deal must include. This includes
searching for special programs that can make it stress-free for you to look for a property.
4) Shop around for a loanLook for lenders even if you are only qualified for a single type of loan.
5) Have a reserve lender
Having to qualify for a long does not necessarily mean that your loan will be finally funded- investor markets can
vary, underwriting guidelines change and risk-analysis changes. Having a reserve lender that has approved you for a loan offers you another way to continue the process.
6) Look for a realtor
If you already know the amount you can qualify for, it is time to look for a real estate agent. Opt for someone who works with a group of individuals who can give suggestions about insurance agents, home inspectors and the like.
7) Choose the locationYou probably have a perfect location, but consider the price. Houses and lots are more affordable if they are located far from the city. On the other hand, estimate how much you have to spend on the transportation when going to and fro the city.
8) If you already found a property, look at your finances again
Always look on your budget. This time, consider the cost of the moving, immediate repairs, appliances, etc. that you
need before you can finally transfer to your new house.
9) Check the utility bills
It is so easy to be trapped by increasing rates when your new house is bigger than your previous rented home.
10) Never ignore a home inspection
The moment your offer is accepted, spend on a home inspection. Paying around $500 can already give you information about your house. It can help you in deciding for the necessary repairs (if any). Also, you can leverage your offer based on the inspection report and ask the seller to shoulder some or all of the repairs.