Buying a house is the biggest financial decision of your life. It can be both exciting and confusing as you navigate through the different aspects of purchasing a property. First-time home buyers are recommended to take time and conduct their research before making the purchase decision.
Here is a list of tips, provided by Rex Homes, that can help new homebuyers with the purchase process and get them closer to the house of their dreams.
- Aim for a 20% down payment
Lenders and brokers consider the down payment you can afford when reviewing your mortgage application. Homebuyers can build a strong first impression on lenders by having a solid 20% down payment amount in their account. This will help secure a favorable interest rate and you can also avoid private mortgage insurance in this way.
- Understand your needs
Top class furnishing and décor are always tempting. But it is important to weigh the pros and cons before putting in an offer. Any incorrect decisions made while purchasing a home may lead to regret and homebuyer’s remorse later on. Hence, it is best to note down your must-have requirements before you start your house-hunting process. This will help you stay on track without being swayed when you make a decision.
- Evaluate your credit score
Your credit score can impact your mortgage application and the interest rate. It is essential to have a good credit standing and rectify any issues or errors in your credit history before you start looking at houses.
- Get a pre-approval
It is a good idea to call the broker or your bank and get the loan pre-approval. This will give you a clear view of your financials and price range so that you are not wasting time reviewing houses that are out of your budget.
- Conduct a home inspection
First-time buyers tend to skip the home inspection process as they want to save on cash. However, if the house has major problems that you find, it may cost you a lot of money to get it fixed later on. Hence, it is always a good idea to conduct a home inspection for each offer you make to avoid facing issues in the future.
- Buy within your means
As first-time buyers, you may be tempted to take out a big mortgage. However, it is recommended to always stick to your budget as you can never predict what will happen in the future. Do not buy a house if you are not comfortable with the price.
- Be Realistic
Remember that this your first home purchase. Buying a dream house may take several years or more investments. Be ready to accommodate any changes to your wish list.
- Understand if there are any hidden costs
Most new buyers remain unaware of several hidden costs associated with a new house. It is recommended to have funds in reserve for unexpected repairs, moving charges, furniture, and so on before making your final purchase.
- Hire a qualified mortgage professional
Seeking help from a mortgage professional can save you the confusion and anxiety that comes with your first home purchase. A knowledgeable and experienced professional provide all the necessary information required for this endeavor so that you make a well-evaluated decision.
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