5 Financing Tips for First Time Home Buyers
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Buying a house is an interesting adventure especially for the first time buyer; it involves a lot of learning process, but doing a little homework before you do these will surely enable you to navigate the process successfully. If you want your home buying experience to go smoothly, then you really need to follow these 5 best real estate financing tips.
1. Figure out your down payment
How much do you have at the moment and what is the cost of the house you want to buy? If you browse the internet, you will discover there are many interesting home investment partnership programs you can get acquainted with. Most of them are interest and payment-free, and often forgivable after five years. Please keep in mind that it is more like grants, although considered as a loan by some agencies.
When you are starting this process, it is necessary you talk with some mortgage lenders around you. Also, confirm with your neighbors, colleagues, family, and friends, and find out the lenders they enjoy working with. Learn from their first-time home buying experience. Their ideas can help you stay on the right track.
2. Plan how much loan you can afford
It is important you know your price range. This is very important before you even start looking for a home to buy. Using a home affordability calculator will enable you to know your budget or what you can comfortably spend all things being equal.
3. Talk to real estate professionals and seek help
You need to work with a professional real estate agent because you can’t do this alone. Take time to do research and find out a real estate agent you can comfortably blend with. Look for someone that is highly knowledgeable, self-motivated and skilled about the area you want to buy the house. The type of house you buy is a reflection of the real estate agent you use.
Start asking your workplace colleagues, family and friends who live in your chosen area for recommendations of professional realtors. You will never go wrong by doing this. Statistics show that a greater percentage of home buyers found their real estate agent through a personal referral or by using a realtor they have used their services previously.
Also, If you try this method, but couldn’t get helpful tips, don’t give up, all you should do is to check out for some real estate websites. If you do this, it is obvious you will get quality ratings on local real estate agencies. If you get a professional realtor, you will discover that they will more willing to listen attentively to your needs and find out whatever you are looking for. They will always be there for you, providing your needs in a professional and cost-effective manner.
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How to communicate
All you need to do is just inform them the type of house you want to buy, your preferred location and your budget, and then they will work around your budget and deliver the exact home for you. They will never give you any form of stress in delivering their services. You can go about your business with the assurance that someone is there trying to attend to your home buying needs.
A professional real estate agent will also have real estate attorneys and contacts for loan officers. They also provide helpful ideas like a copy of a mortgage pre-approval letter from a financial institution. This will convince sellers that you are indeed a serious buyer. When sellers get this, they will be more willing to engage in a home buying transaction with you.
4. Choose a home that matches your needs and budget
Apart from saving for a down payment, it is important you make available the funds you need to close your mortgage. Closing costs fall within the neighborhood of 2% to 5% of the loan amount.
It is good you shop around and check out for some closing expenses like title searches, home inspections, and homeowners’ insurance. You can also save some costs by negotiating your realtor’s commission, or by asking your seller to take care of part of the closing costs. You will never go wrong by calculating your expected closing costs because this is the only thing that will enable you to set your accurate budget.
5. Know the loan basics
If you want to take a mortgage loan, then one of the key players that will help you get approved or not is your credit. This will help you to determine the loan terms and possibly your interest rate. So, before you start the home buying process, you are expected to take time to check your credit. If there is any error that will be dragging you down, then try as much as possible to dispute it, and look for opportunities that will enhance your credit like making a dent in outstanding debts if any.
Thank you for reading!
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