Talk to any Realtor and they will tell you that there has never been a better time to purchase a new home. For the first- time home buyer, the outlook is even better.
Interest rates are low, there is a large inventory of homes on the market, and prices are coming down. With the additional finance options available to first- time buyers and an array of beautiful Florida homes available in nearly every price range, the dream of home ownership may become a reality to hundreds of first- time buyers this year. Many first- time buyers are intimidated by the home buying process and worry about their lack of knowledge when it comes to real estate. Real Estate- Preparing for your new home purchase. While it is true that there are several pitfalls that any home buyer can fall into if they are not aware of them, there is a wealth of information available to the first- time buyer. Buying Real Estate- Put your finances in order.
Finding this information and thoroughly preparing for a new home purchase can and usually does lead a pleasurable and gratifying home buying process. The first thing you should do as a new home buyer is take stock of your financial situation. Do you have good credit? Do you have a stable job that provides reliable income? How much debt do you currently have? Knowing the answers to these questions ahead of time allows you to set reasonable expectations before you go shopping for homes. What can you afford in terms of mortgage payments?
Obtain a copy of your credit report to ensure that there are no surprises waiting there for you. Finally, select your lender and obtain pre- approval for your loan before you begin searching for your new home. Be realistic when selecting the targeted price range for your new home, it is best, and of course to avoid any major purchases( such as a new automobile) or job changes when you know you will soon be applying for a home loan. You can also begin researching local insurance companies to find those that are currently writing policies and which company can offer you the best rate. Most banks, and housing finance, mortgage brokers agencies offer special incentives for first time home buyers, including lower down payment requirements, or even 100, better interest rates% financing. Incentives for the first- time buyer to purchase Real Estate. Call the Housing Finance Agency in your state to obtain information on special first time buyer programs.
Take advantage of this valuable resource. There are literally hundreds of free websites on the internet that have information to help first time home buyers. Visit as many sites as possible and take careful notes. Do you need a Realtor to buy Real Estate? Familiarize yourself with the terminology used by lending institutions, realtor's and builders so you can make informed decisions and be an educated negotiator. The answer to this question depends largely on the type of home you are looking for. If the builder does not have to pay the 3- 6% realtor's commission, they may be willing to pass these savings along to you.
If you have decided to purchase a pre- construction or newly constructed home, you may be better off going directly to the builder's sales office to make your purchase. If you have done enough research to feel comfortable with the terminology and negotiating techniques, it is possible to save a great deal of money this way. This is also true when purchasing an existing home By Owner. This is where having that pre- approval from your lender can become a very useful negotiating tool. However, since it costs you nothing to obtain a realtor's assistance when purchasing a new or existing home since the seller is paying the realtor's commission, you should make your decision based on your own comfort level. Regardless of whether you decide to obtain a Realtor or negotiate on your own, don' t ever purchase a home without a thorough inspection of the house and premises by a qualified professional.
Don' t forget the Home inspection. You need to have a good handle on any repair costs that you may be facing, whether it means ridding the home of termites or termite damage or replacing outdated plumbing, appliances, wiring, or a leaking roof. In closing, it doesn' t matter if you are purchasing your first home or your tenth, as an educated buyer you will have the best home buying experience. Repair costs can take a very large bit out of the unsuspecting home buyer's budget. Taking the extra time to thoroughly research the market, and available financing, standard buying procedures will greatly increase your odds of finding your dream home at a price you can afford.
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