You've made the decision to make one of the largest investments you'll ever make in your life-buying your first home. You're excited, but at the same time anxious. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Can I get a home inspected before I make an offer?
Rest assured, you are not alone. The home buying process can be overwhelming, but if you go into it prepared, your first purchase can be a good experience. Here are some things to consider before taking the plunge.
Getting a mortgage
Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller because it shortens the purchase process and there is less chance the buyer will back out of the sale.
The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with the help of your real estate professional and loan consultant, you can calculate out how much you will be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.
The down-payment amount varies depending on the value of the home you choose and your mortgage lender. Your MD Properties property consultant will be able to explain the different options available to you.
Buyers often forget to consider the closing costs when making an offer on a home. Paying closing fees of up to 5 percent of the home sale amount is not unusual. Add that to the down-payment and you'll have quite a sum to raise before the final papers can be signed. However, a savvy first-time buyer takes this into account before making an offer, and with some professional help, the costs can be estimated in advance.
Don't feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you do decide on a home on which to make a bid, work with your real estate professional to get all your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
Condition of the Home
Buying a "problem" home is another fear of first-timers. A home that needs major repairs can become a costly venture. And, unless the asking price is adjusted to reflect the hidden repairs needed, chances are the home is not worth as much as the seller is asking for it. To avoid unfortunate surprises, your property consultant may advise you to hire a third party specialist before making a serious offer. That way, you know what you are getting into.
Above all, as a first time buyer, please remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your MD Properties’ consultant will be an invaluable asset in helping you make educated decisions to ensure your first-home purchase is a rewarding experience.