It’s your first time buying a home. Your family and friends are encouraging you and you know in your own mind, just what you want, but how do you go about buying your first piece of real estate. What should you be looking for? What do the contract terms mean? What steps are taken from the time of signing contract to the time of settlement? Following are some helpful hints and tips to guide you on the journey.
Be realistic in your decision to buy real estate. The cost associated with real estate ownership goes far beyond mortgage payments. You must factor in insurance, taxes and the maintenance of the home itself when you calculate the impact on your income. If you know what you can afford on a yearly basis, you can budget your money accordingly.
If you find a house that you would love to purchase but the kitchen is far from what you are looking for, you should reconsider the purchase. Major kitchen renovations are very time consuming, and can cost a lot of money, so only buy the home if you are ready for that type of commitment.
When dealing with a lender to finance a home purchase, make sure everything they have told you is written down in your contract before you sign it. In most cases, verbal contracts are worthless. Remember, if it’s not on the paper, it doesn’t count. Unscrupulous lenders may even switch out rates between what they tell you and what appears on the contract.
In the beginning stages of home buying, you will want to get pre-qualified for a home mortgage loan. This is really a simple, but valuable process. To obtain this pre-approval, a mortgage lender will review your personal income, savings, and monthly out-of-pocket expenses. By reviewing these numbers, the lender can calculate how much you can finance and how much the monthly payments will be for the loan.
By using the guidelines in this article, the purchase of your first piece of real estate should be an exciting and rewarding experience. Never be afraid to seek professional assistance if you feel you need it and take your time to be sure that the right property is purchased. You will be joining the ranks of home owners in no time.