Tips for buying your first home that you should know
Buying a home for the first time can be quite confusing and overwhelming for most people. This is understandable because of the many processes involved, the legal jargon and the money at stake. There is always the fear that you can make a mistake and end up losing a huge amount of money.
Here are tips for buying your first home that will help you make the move with confidence;
1. Enlist the services of an agent
Some buyers prefer doing things alone by browsing the internet to look for homes for sale and attending open houses. The downside of this is that it can take you a lot of time. The best thing to do is to look for a reliable agent who has done this many times before and will know what to do. An agent can provide you with listings that meet your needs and take you around to tour homes. They will also know when a home is being overpriced and tip you off saving you money in the process.
2. Talk to your bank
It is advisable to have your loan pre-approved before you embark on the journey of buying a home. If your loan has been approved, a seller will take you more seriously. It will also help you know exactly what kind of a house to look for during your search in terms of price range.
3. Inspect the home
Having the home inspected before you pay for it is crucial because it can save you a lot of money in repairs and renovations. If the inspector discovers there house has certain problems, you can talk to the seller to have them fixed as a condition for continuing with the purchase.
4. Fix your credit
Ensure that your credit is in a good state because the lender will use it to decide whether you qualify for the loan or not. Pay any outstanding dents that might hurt your chances of getting a loan.
5. Save for down payment
Buying a home requires a down payment of about 20% of the total price of the home. Sometimes, you can be asked to pay less than 20% but it can still be a sizeable amount. Therefore, saving up for the down payment can help you overcome this hurdle. Work returns, and work bonuses are some of the sources of money that can help you save a sizeable amount of money without straining too much. Generally, you should be financially prepared before you begin looking for a house because you will also need to spend some money when closing.
6. Look for the important things
When viewing the homes look for the most important things such as the kitchen, bathroom, floors, roof and basement among others. Do not be fooled by the superficial improvements such as paint and overlook the critical ones that really matter.
Although this may sound like a lot – it will all be worth it when you finally make it to the closing table!