Important Facts for First-Time Home Buyers

There are so many things that you have to take into consideration while buying your first home; from location, neighborhood, nearby amenities to price, construction plan and available space. Without proper planning and knowledge of some crucial home-buying facts, you would end up buying something that is highly priced and also no where close to your dream home. For your help, we have compiled a list of essentials that every first-time home buyer should know.

  • A good credit report will make a difference- All mortgage lenders evaluate the credit report before approving the loan application. A flawless credit report can get you more loan at a better rate of interest. For this reason, spare no effort to make your credit report as faultless as possible. Pay all your bills on time, and get errors and inconsistencies removed from your report. 
  • The importance of saving money- You should have adequate amount of money to be able to make the down payment. You can request your mortgage lender to do this. However, if you use your own hard-earned money for the down payment, the lender would get an assurance that he will also get back his money as you won’t step back after investing so much. 
  • The need to prepare a financial plan- It is very important to draw a financial plan before even going out to look for a house. With this plan you will get to know two things viz. one, your budget, and two, the kind of home you can actually afford to buy. It will also stop you from over-spending. 
  • A proficient real estate agent- The job of a real estate agent is not only to find a house according to your requirements, but also to help you negotiate the price, and detect the imperfections of the house. 
  • Home market trends- It is very important to know the current market trends prior to buying your first home. With the knowledge, you will be able to ascertain the true value of the property, and you will also be able to do a comparative study and thereafter choose the best house. 
  • Know your desires and requirements- It is very important to ascertain whether your first home is fulfilling all your desires and requirements or not. It is unusually difficult to buy a home, and for most of us, the first home is usually the last one. Hence, do not overlook your needs and desires. 
  • A pre-qualification letter makes a difference- A pre-qualification letter proves that you are a genuine buyer and a mortgage lender is ready to help you in your home-buying endeavor. It also provides you the power to negotiate assertively with the seller. 
  • Finding the right home- Of course, your real estate agent will help you in your home search, but you can do it on your own too. The internet is a good resource of idyllic properties. You can find your dream home quickly here. 
  • Getting the home inspected- The next important thing is to get your home inspected to uncover all the defects, blemishes and imperfections. You can negotiate with the seller persuasively on the basis of the home inspection report. 
  • Buying the home- Once, you are fully satisfied with all the aspects of the new home, submit the offer, negotiate and close the deal.

Source by Anubha Shyam

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