What’s the best investment you could make 2019? Well, there are many things that might come to your mind but buying real estate is one of the time-tested and secure ways to invest your money. Since centuries, people have been buying homes and passing it on to the next generation.
Buying your first home might seem a bit overwhelming as there are so many things that you will have to do for the first time in your life. Moreover, the stress of getting everything right must be killing you. To make things easy for you, I have shared a list of things a first-time homebuyer needs to know.
Here are the things you need to know when buying a home for the first time in your life.
1. Hire a superstar real estate agent
Without a real estate agent, it’s impossible to buy a home; unless you are buying from a family member. They know the industry very well and have been through the same process thousands of times. You don’t want to waste your time by getting stuck at every step that is involved in home buying. Moreover, a good real estate agent cares about his/her reputation and will never risk it for a few thousand dollars.
2. Be clear with what you want to do with your new home
Are you buying a home to become the primary occupant or mere to invest for the future? When you buy a home for your own family, you need to consider a lot of things like the location, culture in that area, the presence of hospitals and clinics nearby, etc. Although, factoring these things it will also help you get a good monthly rent from your tenant.
3. Check your credit score
Your credit score/history is vital when it comes to getting your home loan approved. Lenders calculate your interest rate based on your credit score and income. With a low credit score, you will find it very difficult to get your loan approved. And even if some lender does approve it, they will charge a high-interest rate. So, if your credit score is low, you better postpone your plans of buying a home and focus on building credit.
4. Get pre-approved for a mortgage
Getting pre-approved is a lot easier than you think. Before you apply for a loan, the lender wants to make sure that you have the financial capacity to pay it back. For this, they pull out your credit reports, have a look at your gross yearly income and calculate the loan amount that they can afford to give. They email the pre-approval letter on the same day and you don’t even have to visit the lender’s office.
5. Inspect the home before buying
Last but not least. Inspect each and every part of the house before deciding to buy it. This is a tricky step for some first-time homebuyers as they have never faced the problems most homebuyers face and hence don’t know what to look for during the examination. Inspecting the exterior of the home is equally important. Don’t hesitate to climb up the attic if needed.
The points mentioned in this post will point your mind in the right direction when buying a home for the first time. Also, there are a lot of additional expenses that you need to be prepared to make. Hiring a real estate agent, inspection agent, post-purchase home renovation, etc may cost you more than you would estimate.
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