Buying a home for the first time is a nerve-wracking and overwhelming experience. While a professional real estate team can help with the process, it’s good to be prepared ahead of time. Here’s some good advice to know before you head out looking at houses for sale:
- Be Prepared for the Fees.
It’s important to prepare ahead of time for the fees associated with buying a home; down payment, closing costs, and moving expenses. Your down payment will depend on your lender and the cost of the home, but you should expect at least $10,000-$20,000 upfront. Closing costs usually range between 2-5% of the loan amount, and you’ll have to pay this fee to finalize the mortgage. You should also be prepared to pay the cost of a home inspection at this time as well. Lastly, you’ll need to budget for moving expenses, including what it costs to hire a mover, take care of any repairs needed on the home, and any furnishings you’ll need when you move in.
- There are Programs to Help You
Make yourself aware of any first-time homebuyer assistance programs that you qualify for. These programs offer low-interest-rate mortgages with closing cost assistance and down payment assistance to make purchasing a home easier to afford. Many tax credits are also offered through these programs. Buying a house is difficult, but taking advantage of these programs will make it just a little bit easier.
- Preapproval Letter
Let’s say you find the perfect home, only to be told that there are two other interested parties also willing to make an offer. Rather than head to an all-out bidding war and pay more for your trouble, get a preapproval letter from your lender to show that you’re a serious buyer and are prepared to go forward. This small step can show the seller that you’re ready to buy, and this knowledge will put you in their favor compared to the parties who have not taken this step.
While this is not nearly everything you need to know, these few pieces of advice will put you ahead of the pack when you find the perfect home.