7 Things Everyone Needs to Know about Buying a Home
Many adults are excited to purchase a home and relocate to a new area, which is often an exciting process. Buying a home offers stability and can secure you financial future with the investment. When you’re ready to buy your first home, there are a few important facts to know ahead of time.
1. Save for Closing Costs
Although most people are aware that they need to save for a down payment on their home, you’ll also need to pay for the closing costs after purchasing the property. Closing costs are typically two to five percent of the purchase price of the home and cover the appraisal, attorney fees, pest inspection fee, title insurance and survey fee.
2. Consider the Neighborhood
Although you may fall in love with your dream home, the neighborhood that it’s located in will determine how much you enjoy living there. Research the crime rate and visit the property at different times of the day to determine how safe it is.
3. Hire a Real Estate Agent
Hiring a real estate agent will help you to have the advantage with the negotiation process and can also allow you to find homes that may not be listed.
4. Get Pre-approved for a Home Loan
Many new home buyers make the mistake of waiting to get approved for a home loan after making an offer on a property. This can cause the seller to have a lack of faith in the transaction and can make it easy to lose out on the deal. According to Sente Mortgage, a financial lender that works with home loans in Austin, you should get pre-approved for a home loan to ensure that you establish more credibility with the seller.
5. Choose the Type of Home Loan
It’s important to know what type of home loan will best suit your financial situation. An FHA loan is most ideal for first-time home buyers due to the low down payment that is needed. VA loans are also provided to veterans and do not require a down payment. Research your options to determine what you qualify for.
6. Hire Your Own Inspector
You’ll want to hire an inspector to look at a home you plan to buy to determine if there’s any repairs needed on the structural or electrical parts of the property. Although the seller will perform an inspection with their own professional, it can be difficult to trust someone that you don’t pay yourself.
7. Determine What You Can Afford
Not only do you want to calculate the mortgage that you can afford to pay each month, but you should also factor in other expenses that include the utilities, landscaping, HOA fees and homeowner’s insurance.
When buying a home, there are many steps to the process for those who are purchasing their first property. It’s important to perform enough research and be prepared to avoid complications or mistakes from occurring.