A mixture of lots of excitement and fear of uncertainties comes with the experience of getting to buy a house for the first time. This makes it easy to make costly mistakes that may lead to decisions that you would regret later. It would help if you were equipped with vital and relevant information such as tips and potential pitfalls as you embark on the journey of buying your first house.
According to the US Department of Housing and Urban Development (HUD), a first-time homebuyer can benefit from tax breaks and loans backed by the federal government and is not bound to pay the minimum down payment of 20%. If you possess the following qualities, the HUD considers you a first-time homebuyer:
- You have not owned a principal residence for three years. This also applies if you have owned a house, but your spouse has not. In this case, you can buy a house together as first-time buyers.
- A single parent who has only owned a house with a divorced spouse while married.
- A displaced homemaker who has only owned a house with their partner.
- You have owned a principal residence not permanently affixed to a permanent foundation in compliance with regulations applicable.
- You have owned a property that was not under state, local or model compliance codes and that cannot be brought into compliance for less than the cost of the construction of a permanent structure.
As a prospective homeowner who is new to the systems and processes of buying a house, the following guides can help you in this journey. So, you do not make costly mistakes or get stranded. These guides are also relevant for you if you are not buying your house for the first time.
Consult An Agent
Agent services can provide reliable information and reviews about various houses so you can make a choice. This also involves taking the burden and stress of touring and researching different houses off your shoulders. An agent can also give expert advice by detecting overpriced offers or inferior quality.
Find A House To Buy
You certainly ought to find out the house you intend to purchase. It would help if you were sure beyond reasonable doubt about the house you intend to spend years or decades in. Homebuyers typically decide to buy a home after visiting and checking out two or three houses.
Get A Loan
For first-timers, the Federal Housing Administration (FHA) offers loans as low as 3.5% of the purchase price; this is less than the conventional payment. For convention buyers, Real Estate Owned (REO) banks offer priority for buying foreclosures. Agents and mortgage brokers have more information about this.
Negotiate
Sellers can put up any price they like. The price details they give do not always mean the price they will eventually sell the house. Saving some amount of money while purchasing a home is worth it.
Inspect The House
As a buyer, you have the right to a contract contingency, which means that you can cancel a house sales deal if you find out that the house you intend to buy has some problems. For instance, detecting a faulty foundation in a home one wishes to buy can be lifesaving.
All these processes can be daunting for a first-time home buyer that why it advisable to get an agent dedicated to your interests as a buyer, and Buyer’s Agent Brisbane has got you covered!
