First Time Home Buyer Basics
A first time home buyer can find it challenging in their search for a home. Relax because here are some basic steps for you to take. Class is in session!
1. Plan by deciding what you want
For your first home buying transaction to be successful, you need to get more knowledge on what you want and then plan appropriately. Why are you buying? Is it due to change in lifestyle or is purchasing an option rather than a requirement?
Be ready in terms of money to make down payments and closing costs. You also require good credit for you access loans that need little or no down payments.
2. Get a Realtor® (or other real estate agent)
You need to ask. Interview several different Realtors before narrowing down to a suitable one. In your interview, be sure to inquire about their training, professional certification, experience and representation.
Expect proper transactional relationship with her. She should be willing offer you detailed information concerning the current market situation and keep you updated.
3. Get mortgage pre-approval
A first time home buyer needs to get a loan officer. He will review your credit files to determine your borrowing power for a mortgage loan and suggest programs that best suit your needs.
4. Search for homes
Find the house that best fits your needs in terms of finance and other needs. Get enough information and look for buyer representation service brokers.
Keep important information of the several homes you like in a file to guide you.
5. Choose a suitable home
A Realtor who knows the current situation and the community will enable a first time home buyer to make advised negotiations in accepting or rejecting a seller's offer.
6. Get appropriate financing
Based on your credit and down payments required, you will need to turn that mortage pre-approval into actual finanicng with your lender. Apply for it by providing required documents (most of which you should already have given your mortgage consultant or loan officer).
7. Make an offer
Depending on supply and demand in the market, a first time home buyer has to make an offer that will be presented to the owner for approval/rejection.
8. Get insurance
Insurances like title, flood and home warranties insurances can be gotten from insurance brokers at closing time. Inquire about their limitations, costs and other important information before going for a suitable one.
9. Closing
A first time home buyer and the seller will sign required papers to complete the transaction and the ownership of the property will be transferred to you.
You can also download a free eBook full of first time home buyer information. Below is a button where you can download "The Essential Guide to Buying Your First Home." From FICO scores to down payments and everything in between, it's all in there.
(creative commons photo credit)