First Time Clues (There are several informational brochures and articles available to assist the first time home buyer in purchasing his or her property, successfully.)
All of these guides should be “taken with a grain of salt.” There is so much information to process that each buyer will adhere more to certain tips than others.
Regardless of what you choose, do as much research on the buying process and the home’s area as possible.
The article, “Top . . . Tips for First Time Home Buyers,” written by Michael Licamele and posted on mortgagealmanac.com, provides helpful information that you may not have heard before.
The first thing you should do that is overlooked by many prospective home buyers is that they do not pre-qualify before buying the property. When you pre-qualify for a loan prior to attempting to buy a home, you will be able to narrow your search of homes and feel comfortable that you will be able to afford it. This will also provide the buyer with bargaining power over the Realtor or seller because the buyer will already have an idea of what to expect financially.
You should then demonstrate you are able to pull your own weight. “A mortgage lender wants to know that your income can comfortably cover monthly mortgage payments and your assets are sufficient to cover the down payment and closing costs. Acceptable sources of household income include earnings from your regular job and any secondary jobs, as well as overtime, commissions and bonuses.”
The third and most obvious thing to do before buying a home is to ensure that you have good credit. Your credit report will be accessed by the real estate agent or broker you go through. Your report will issue a rating. The better the rating equals the better chance you will have at getting the best mortgage possible. You can obtain your credit report for free from numerous agencies.
A common mistake by first time home buyers is that they think the quoted rate is definite. “Don't be misled by a lowball rate; be sure to check out the details of the loan program. Most mortgages have either a fixed rate (payments remain the same for the life of the loan) or an adjustable rate (payments adjust up or down in accordance with national interest rates) and a term (amount of time you have to repay the loan) of either 15 or 30 years.”
The last important tip (Licamele actually provides 10 in his article) tells you to find a real estate agent, Realtor or broker who is reputable and knowledgeable.
“Ask real estate professionals if they will be representing you as a sub-agent or as a buyer-broker agent. Selecting a qualified agent, who is able to answer your questions regarding the area, population, school districts, taxes, etc., will be a big time-saver, since he or she will save you a trip to the local records department.”
Whoever you decide to do business with will have a lot of control over the success and pleasure of your home buying experience. A good agent will get you the best deal on not just the best home, but rather on the home that you desire. Now, even if your agent gets you the deal you were seeking, if he or she is not friendly and cooperating, the overall experience will be miserable.
Remember, you are in control when purchasing a home. You do not have to sign or agree to anything you do not want to and you certainly do not have to take orders from your agent. You hired them.
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