Information For Buyers
First-Time Home Buyers
Dreaming of home ownership? While it can be frightening, consumers who have the resources to buy a home shouldn’t shy away from this type of financial decision. But you must be prepared and have the money to do so, or you may incur years of unavoidable debt. With the help of your REALTOR® or real estate representative, and some research, buying a home for the first time will be less overwhelming and complicated. Do not rush into a decision and to prepare well ahead of time.
Here are some tips, guidelines and advice for those who are thinking of buying a home:
Knowing That You're Ready
Before you even look at homes online or in the newspaper, make sure that you have the ability to buy a home. Check your finances, your credit score and budget accordingly. Ask your real estate professional or your representative at your bank to check over you financial situation to determine whether or not you’re ready. If you aren’t or if you feel like you aren’t, start saving what you can. Even if you choose to buy a home, you’re going to have to cut your spending considerably.
Know How Much You're Going To Spend Before You Look
After you have found out that you’re ready to buy a home, it’s time to budget yourself. Determine how much you’re willing to spend to purchase a new home, as well as for down-payments – something that usually gets left until the last minute.
Finding The Right Real Estate Representative
If you haven’t already, you should acquire the assistance of a real estate professional. As a first-time buyer, you should never go solo when buying a home. A real estate professional can give you advice on what home is best for you, as well help you search for the most fitting home for your needs.
Knowing What You Need
Once you acquire the assistance of a REALTOR® or agent, start looking for a home that suits your needs. If you’re thinking for the future, take that into account when deciding which home is best for you. But don’t be over the top—be realistic when searching for that first home.
Getting a Home Appraised and Inspected
To receive a quality mortgage, homeowners will need to hire an appraiser. An appraiser values your home based on the surrounding market and the condition of the home. Finding a reputable appraiser is crucial because an overvaluation can be detrimental to your economic health. An inspector is someone who comes in to check out the physical condition of your home. Hiring an inspector will let you know if you have to spend extra money on repairs, renovations or construction. Do this before you close on the deal – you don’t want to spend considerable money after you’ve bought the home.
Understanding Your Mortgage Options
Do research before you choose a mortgage. Go to various lenders and understand their rates and policies. You could also ask your real estate agent for some help or hire a mortgage broker. There are different options, so find the one that suits you.
Hiring a Lawyer/Notary
Have a lawyer or a notary read over the financial documents. This is to ensure that you’re not getting into a deal that looks shaky or fraudulent. The lawyer or notary needs to be a real estate specialist.
Don't Forget About Closing Costs
Make sure you understand the various related fees with the transfer of home ownership. These fees can include legal costs, land transfer taxes, disbursements and many others.