Every first time is most of the time the most difficult because you have no prior experience to rely on. If this is your first time or you are about to buy a new home then these “Home Buyer Tips” might just be able to help you. There are things to be considered when buying a home and without proper decision making a wrong move might be costly for you or your family.
Here are some of the tips which we hope can help you in buying a home. Remember that these tips are not a finite solution in order to avout pitfalls because they only serve as a guide.
Home Buyer Tips #1: Determine Your Financial Capacity
What is your financial capacity? How much can you afford and will be able to pay considering all your circumstances. Remember that in buying a home you are about to spend not only for the price of the home but also for other incidental charges. These fees includes deposit, inspection costs, application costs, down payment, and closing costs among others. (Read: Realtor Fees and Closing Costs)
You can use the calculator below to determine your financial capacity.
Home Buyer Tips #2: Pre-approval of a loan
Pre-approval for a loan seems to be more attractive for a seller rather than being pre-qualified. The process in being pre-approved involved a detailed look into your financials. When doing this a lender will pull out a fact date called Tri-merge credit report. If you are a first time home buyer it will include collection of your pay stubs, W-2’s, verifying your employment, and any other information needed to be approved.
Creating a Realistic Expectation
When you are buying a home it is very important to set a realistic expectation based on your capacity to pay. These expectations include the siz e and type of home which you can avail. Be realistic and accept what you can afford. Sometimes you might feel that you need a larger and better home, however, in the end it might be very expensive for you.
Real estate agents who have a very good background in the real estate market can readily help your with this. Home Mortgage Alliance Corporation have several loan officers and agents which can also assist you in managing your expectation.
Home Buyer Tips #4: Know the Home Buying Process
It usually takes 60 days from contract to closing. It is not enough that your loan is approved and that you finally had a real estate of your choice. The process had just began. Below is a diagram on the usual home buying process which you need to go thorough. (Related Article: Defining Mortgage and Loan Terms)
Home Buyer Tips #5: Know the Real Estate in your area
Being educated about the real estate industry in your area and in general will be your strongest tool in buying a new home. As of today, there are tons of information available on the internet. If you properly utilize this you can save big time. Finding a luxurious home at an affordable price is also a possibility. The internet, however, contains unverified information. You might see that the home has swimming pools but upon inspection the pool is no lobgr working.
Finding the right real estate agent is therefore necessary. An ideal real estate agent is someone that is knowledgeable in the area where you will buy your new home. When looking for a real estate agent be sure to ask about his background, references to previous transactions, testimonials, and how many sales does he complete a year among others. Get to know the agent before transacting with them.
Selecting the right lender
There are many lenders out there and choosing one can be very difficult. The best way to choose is to know the grants and incentives provided by each of them. Select the lender which will best give you the affordability and best option. You can also search online and cross reference them with people who had done transactions with them.
Home Mortgage Alliance Corporation (HMAC) offers you our services to help you buy your home through our partner network. HMAC does not directly transact with home buyers but we do have loan officers and affiliates which can help you. Our team aims to provide the best service there is in 27 states and soon to be nationwide.
If you are a first time home buyer or a buyer which needs assistance and advice don’t hesitate to contact us or call 800-900-7040.