Rates were seeing all time lows, but they have been slowly going up since the start of this year. Rates are still fairly low (about 4.49% currently for a 30 Year FRM) which is why many are in a scramble of whether or not they should take advantage of the market and buy now. Before considering the purchase of your first home, consider some of these tips to make your first home purchase less stressful.
Before You Start Looking
Find out how much you can actually qualify for. It is good to get an idea of how much a lender will actually be able to give you. It’s very important as you may be under the impression you qualify for a $250,000 home, but are actually only approved for $150,000. Your pre-approval letter will be the ticket to start the home buying ride.
What You Can Afford VS. What You’re Approved For
The bank may have approved you for up to $150,000, but is $150,000 more than you can chew? Be sure to look at total cost as well as your monthly payments. A $150,000 home may be within your budget for just monthly payments but also keep in mind you may be buying more home than actually needed. This can additionally mean higher utilities and upkeep for the home. It’s also important to remember additional costs like your down payment, property taxes, insurance, and closing costs.
Find a Real Estate Agent
Being a first time home buyer can be overwhelming if you do not know everything about buying real estate. Truth is you don’t need to know everything. Find a real estate agent who can help you along this process, but be sure to find the right person for you. Real estate agents will make the home buying process more convenient. So there’s no need for you to play phone tag to try to schedule showings for homes. Their negotiating skills will also be a definite plus letting them be the messenger in the transaction (since some of us lack negotiation skills, like me.)
Help Me Help You
Your real estate agent will definitely be a big help in the home buying process, but be sure to help them help you. What type of home are you looking for? Let your agent know! There are many options from condos, town homes, traditional single family homes, and more. Trust me, your agent does not want to waste time showing you a condo if you have a traditional single family home in mind. Also communicate any specific features you would like your dream home to have. Don’t be too picky though… your dream home might be right in front of you with a simple change of a wall color or an update of an appliance in the kitchen.
Do you have any tips for any first time home buyers? Was there anything you wish you would have known when you were purchasing? Share your experiences, tips and questions with us in a comment!
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*The information in this article has been provided strictly for educational purposes.
