Buying a home is no easy task, especially for those doing so for the first time. Many aspects need to be researched and learned about and missing any of them can lead to more than just headaches.
Tips for First Time Home Buyers
Many buyers commit many mistakes that hurt their chances of obtaining their dream home, and this is something we want you to avoid. If this is your first time purchasing a home, you are in luck. We have listed down some tips you can remember to make buying your first home a smooth and error-free experience.
- Get pre-approved. One of the most important things you need to do when buying a home, whether for the first time or not, is to get pre-approved with your mortgages. This does two things. First, it proves to the seller that you are serious about the purchase. Second, when you know you are eligible for a mortgage, you can move forward with your plans knowing you have a mortgage ready. Getting pre-approved lets you know how much you can borrow, allowing you to make well-informed decisions that will lead you to a successful home purchase.
- Stick to a set budget. You might be tempted to add a little more to your budget here and there to buy your dream home. Unfortunately, this is the demise of many would-be homeowners. That is because they forget that there are other costs to cover, such as property taxes and insurance, that they might no longer be able to afford. Avoid making the same mistake and strictly stick with your budget.
- Hunt for mortgage deals. Apart from getting pre-approved, you need to spend the time to look for the best mortgage deals. If you simply pick and choose the first deal you come across, you would not know if you are missing out on better options that will help you save more money or purchase a better home.
- Pay the 20 percent down payment. That 20 percent down payment for a mortgage may seem quite large to you, and in many cases, it is. For that reason, you might be tempted to opt for mortgages that do not require such a large down payment. However, if you are going this route, you will have to pay for private mortgage insurance. PMI, as some will call it, is there to protect the lender, not you. This will lead to additional expenses that could have been avoided if you had paid for the down payment. In most cases, we recommend paying that 20 percent unless you cannot afford it.
- Use home inspection services. Home inspection services protect you and the seller from problems with the property. However, hiring professional help is not enough. You need to pay attention to the results of the inspection. With the information you receive, you can negotiate with the seller by pointing out the problems found by the inspector. This can lead to many solutions, such as the possibility of lowering the home's purchase price or having the problem fixed by the seller first. The final result will depend on your negotiations, but at least, you will not be left on your own to fix the problems by yourself.
Home Purchasing with Shannon Christenot
The tips above are all meant to protect you and help you make the most out of your first-time home-buying experience. By applying them, you can discover the best deals, save yourself plenty of money and headaches, and ensure you get the best home for your needs and requirements. That said, when it comes to mortgages, only work with reliable and trustworthy lenders. They will work with you to ensure you get the best deals to purchase your home successfully. Shannon Christenot is a mortgage broker in LA, helping home buyers find the best mortgages to purchase their dream homes. Contact her today at (818) 601-2231 and see how we can help!