Buying your first home is an exciting time, and the transition from tenant to property owner presents a long list of significant long-term benefits. However, there are many thoughts and fears many have when considering buying their first home.
When starting the first process of owning a home for the first time, most people spend a good amount of time looking around for the perfect house, the right neighborhood, and the right place. Choosing the right property that fits well at all levels and ensuring that the placement meets all your requirements is obviously a big part of ensuring that your short term and long term needs are met Dallas Home Buyers.
But as you get past the initial stages of simply looking at different properties and trying to determine your exact needs, you may find that buying a house is a little more involved than you first realized. Most first-time home buyers go through feeling a little overwhelmed at first, and a real estate agent can offer significant help to first-time buyers.
Financial assistance for first time home buyers
Plus 5 important tips
Think about today and the future
When looking for the right home to buy, it’s important to think about what meets your needs today and in the future. Most of the time, buying a house is not only a financial commitment, but also a time commitment; which means you are likely to live in the home for at least several years.
If you have no children, a small cabin by the lake may sound fun now, but if you decide to have children in a few years, it can become impractical very quickly. Thinking about your current lifestyle and how that may change in the years to come is an important consideration and can help make your home purchase successful in the long run.
Choose a real estate agent carefully
Choosing the real estate agent you work with is a very important consideration, perhaps the most important one. A good real estate agent can help make the home buying process much easier and much more successful. Realtors are experienced professionals who know what to look for, what to look out for and all the important details that you will need to take care of during your first home purchase.
Some real estate agents offer special programs that can provide significant assistance to first-time home buyers, such as payout assistance, tax credits, and special priority programs. There is even a select few realtors who are willing to give up part of their commission and offer it to home buyers as a refund. If there are restrictions on repayment due to the lender’s guidelines, buyers may instead apply the rebate on closing costs. Either way, it is a significant financial bonus and can provide tremendous help to first time home buyers.
Pay attention to the type of mortgage you accept
Knowing the price range of homes you can really afford is based on many factors, such as your credit score and your debt to income ratio. Knowing your budget from the lender’s perspective is very important so you don’t waste your time looking at properties that don’t fit your budget and don’t fit a lender either. A well-qualified real estate agent can help you with the mortgage process for mortgages, so you are ready to not only make an offer on a property, but you are actually able to secure a loan and close the property successfully.
In some real estate market trends, the seller will not even consider an offer unless the buyer has a pre-qualified certificate from a lender. Working with the right real estate agent who can help you become pre-qualified and who is also affiliated with multiple lenders, title companies and home inspection services will help you be prepared for a successful buying process. In addition, it allows you to negotiate the sale price of a home from a position of strength.
The details, conditions and costs associated with your mortgage loan are important to know how much a home will cost you on a monthly basis and over the length of the entire mortgage period. Knowing if there is a free loan program associated with the loan, interest, maturity and closing costs are just a few of the considerations you need to be aware of before committing to a mortgage. A very important element of a mortgage is if the interest rate is fixed or variable.
A fixed interest rate gives you a fixed interest rate for the entire term of the mortgage, which will result in a predictable monthly payment that is the same month after month from the first month until the last payment is made. Typically, a floating rate will offer a fixed rate for a short period, such as 1 year, 3 years or 5 years, and then the interest rate will fluctuate based on a set of parameters such as the London Interbank Offered Rate, also known as LIBOR.
Other expenses in addition to your mortgage payment
We all know it’s important to make sure you can afford it.