What an exciting time! You’re on the edge of purchasing your first home. Don’t rush in without preparing properly for what’s ahead. Moving forward without this preparation can dampen the excitement and delay the home buying process.
Tip 1 – Credit is Important
Since the mortgage loan lender will check your credit before deciding if you qualify for a loan, you want to make sure your credit report is in excellent condition. It reflects your spending habits, your stability, and your ability to repay a loan. Don’t leave things to chance. Get a copy of your credit report from all three of the major credit reporting agencies and check them for errors. If you find delinquent account on the report, take care of those right away.
Tip 2 – Saving Money
Unless you can pay cash for your new home, you’ll need to secure a home mortgage loan. Even so, you will need money for the down payment, closing costs, and other expenses. The down payment is typically 20 percent of the cost of the home. You can expect closing costs to be around 2-8 percent. You may catch a break and not have to pay the closing costs if a seller agrees to those terms, but you should be prepared to pay them. Don’t forget to factor in moving expenses.
Tip 3 – Real Estate Agent
You don’t have to wade the waters of the home buying process alone. Find a professional real estate agent to represent you during the transaction. They have experience in navigating the process and can alert you to troubles areas that may cause you delays. The resources they have at hand will save you time when it comes to finding the perfect home. Choose one who communicates at the highest level and has strong negotiation skills. These skills will come in handy should your offer come up against competition. Find a real estate agent you trust to handle one of the biggest investments in your life.
Tip 4 – Mortgage Pre-Approval
Before you begin searching the MLS listings and day dreaming about the homes you find, you need to know your target price range. A pre-approval gives you an accurate number for just how much how you can afford. Focusing on only the homes that fit your budget will save time. Sellers love to see pre-approval letters because they prove that the buyer is serious about the purchase. This letter tells them that you can afford to move forward, which could give you the edge during a bidding war.
Tip 5 – Wish List
Create a wish list that will save you time during your home search. Note things like the number of bedrooms needed, style of home you prefer, and community expectations. Make special marks beside the items you feel are non-negotiable. Supply your list to the real estate agent. This list will give them a good idea of what you need and help narrow the search. Be realistic about your wish list. It would be nice to place a big check beside every item on the list, but that doesn’t happen often. Be prepared to make compromises. Knowing which items are non-negotiable will help you stay focused when choices need to be made.
The best source of information about local communities and real estate topics is your real estate agent. Give Tim Burroughs a call today at 208-409-7653 to learn more about the area, discuss selling your house, or tour available homes for sale.