For buyers purchasing a house for the first time, the entire home buying process is daunting. You will be getting yourself involved in the biggest purchase of your life without experience to depend on.
But the good news is that some preparation and some home buying tips from the pros will go a long way and enable you to approach this important decision with more confidence. Some of the tips you can consider are:
1. Leverage on the Location
When you decide to buy your future home or first house, for that matter, always consider location. If the house is too far from your school or work, you might end up spending a lot of money on transportation.
If you have limited options, you may consider real estate in Wyndham Vale, Australia, with the convenience of public transport, like bus stations or KTM/LRT nearby, so as to save time and travel costs.
2. Work with an Inspector
You should hire a good home inspector before buying a house. Inspections are different from appraisals required by lenders.
During appraisals, an appraiser will give you and the lender an idea of how much the house is worth, depending on comparable properties.
On the other hand, an inspector will tell you all the specific problems with your potential home. You may use inspection results to know more about the house and even request concession from the seller.
3. Compare Mortgage Fees and Rates
According to the Consumer Financial Protection Bureau, you should request a loan estimate for the same kind of mortgages from different lenders so as to compare total costs, including origination fees and interest rates.
Lenders can offer you an opportunity to purchase discount points, which are basically the fees you will pay upfront so as to reduce the interest rates.
Buying discount points will make more sense if you have cash on hand and have the plans to live in the house for years. You may use discount points calculators to make a decision.
4. Hire a Realtor
Although it is possible to purchase a house solo, it is not recommendable to do so, especially when you are doing it for the first time.
Experienced realtors may help to vet homes & neighborhoods, draw up contracts, negotiate, and even schedule tours or viewings.
Be sure to ask your colleagues at work, family members, and friends for realtor referrals within your area. If you want to ensure those referred to you are perfect, ensure you interview some.
5. Know the Amount You May Spend
It is vital to determine the amount of cash you can have access to so as to cover the ongoing and upfront costs, not to mention other financial commitments you might need to prioritize.
A big part of determining the amount of money you may spend comes down to the cash you might borrow as a loan and under which terms. This is where having your mortgage pre-approved can be a great idea.
Final Say – Keep Watch for the Sales Tactics!
Most homeowners are already away from classic realtor jargon. For instance, ‘cozy’ normally means small.
You also need to be wary of realtors who motivate you to pay the full asking price. Don’t be convinced to do this unless you have worked with the realtor for a long time now.