Friendly Advice for First-Time Buyers
Buying your first home can be a nerve-racking and emotional experience. You may feel as if you are on a rollercoaster while searching for the right property, going through negotiations and escrow. Buying a home is likely to be one of the largest investments you make, and the emotions involved can sometimes cloud your judgment.
A professional agent can help keep you grounded so you are not tempted to spend more than you can afford or jump at the first home you view. Researching the market by viewing at least 7-10 homes is important. This will give you a good overview of the home market and allow you the time and knowledge to make the right decision.
Don't let your emotions push you into making an offer until you are sure that you have found the right home for YOU. You don't want to take too long — but there is time to know your market! Become accustomed to the neighborhood and feel comfortable with your decision.
Below are some helpful tips to assist you through the house-hunting process:
Types of Mortgages
Are you wondering which mortgage is best for you? The answer depends on your specific needs and income projections. There are so many types of loans and various term lengths, that making the correct decision will take time and research. Discussing these matters with a professional loan broker is very important. Here are some crucial factors to consider:
What is your income at the present, and what are your future income expectations?
How much cash do you have available for a down payment?
How long do you plan on staying in this home?
How much risk are you willing to accept?
Find out the interest rate (APR) that the lender will commit to and for how long. Get any commitments in writing.
Points and Fees
This is a very important factor and may vary depending on the lending institutions. Look out for any hidden fees. Request in writing from the lender all fees and what is included and what is not.
Review the inspection report carefully.
Be sure to list all possible expenses, utilities, and property taxes, insurance, home maintenance.
Make sure all utilities are on during your walkthrough (gas, electric and water) so you can inspect everything. Make sure your agent is present during the walkthrough.
Home Inspection and Appraisal
Having a home inspected before buying is not only required by the lender it is essential to protect you. Sellers may try to cover up major problems in the house. So it is in your best interest to get a good inspection.
A reputable inspector will never offer to perform needed repairs and should not refer you to a contractor for these repairs.
The cost of inspection varies with the area. It may start from $200 and go up to $400 or more.
A written report will be given to you within two days. Keep this report and go over it with your agent. There may be items that need to be taken care of by the seller. Also review this report with your contractor. Be sure to have your agent present during the final walkthrough and have the inspection report with you. Make sure the seller has made all necessary repairs that they are responsible for. Ask for any warranty papers on new appliances.