Buying a new home can be confusing. After all, a home is the largest investment most families will make. Relax! Here are 9 Home Buyer Tips to make your journey to homeownership a little easier.
Home Buyer Tips
The No. 1 tip for first-time homebuyers is to be sure you’re ready. The average mortgage loan term is 15 – 30 years. Although you don’t need to stay in your home for that amount of time, buying a home is still a major commitment.
Before you find that perfect home, get a mortgage pre-approval. It tells you exactly how much loan money you can get. Plus it gives you leverage when you negotiate.
Now is not the time to open a new line of credit. When you apply for mortgage pre-approval, lenders will pull your credit report. If they find that you’ve taken out another loan or line of credit, your credit balance has increased or you’ve started to make late payments, it could risk your final approval.
The type of loan you choose will determine your down payment amount, what type of home you can buy, and more. Conventional loans are the most common type of home loans that require as little as 3% down.
Don’t assume that your down payment is the only thing you need to close on your mortgage loan. You’ll also need to cover closing costs before you take control of your property. Closing costs are expenses that go to your lender in exchange for arranging certain loan services.
Once you’ve decided on the type of home that’s right for you, you can begin to prioritize which features you want in your home based on your needs.
Work with a real estate agent to find the perfect property. REALTORS® are local professionals who are experts in the home buying process and your local market.
Giving earnest money signals to the owner that you’re serious about the offer. The deposit is typically equal to 1% – 3% of your total home loan value and goes toward your down payment. If you back out of the sale for a reason not listed in your offer letter, you’ll lose your earnest money deposit.
It’s likely that your reason for purchasing a home is driven by emotion. Many home buyers get too invested in a home only to find out they can’t get the loan for it, or there are some significant issues.
So there you have it! Nine Home Buyer Tips to help you on your Home buying journey.
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