A first-time home purchase can be exciting and a demanding process. To help you avoid some of the pitfalls along the way we have a few pointers. We’re here to help keep the dream of ownership from starting with a nightmare.
- First and foremost, you should have a clear budget.
- Before purchasing, conduct a full inspection of the home.
- Hire a reputable real estate agent
- Investigate First Time Buyer programs.
- Find a lender that you can trust to walk you through your financials step by step.
Not Deciding on the Price of the Home You can Afford
Creating a budget before going on a house-hunting adventure can save you a lot of trouble as a first-time homebuyer. With a price in mind, you will be able to find properties that are within your budget limits without having to waste time and energy on ones that you cannot afford.
You don’t want to waste time visiting properties that will overstretch your financial means. Fellowship Home Loans can help you determine a realistic goal that will help you buy with peace of mind.
Failing to Hire a Real Estate Agent
A real estate agent is more experienced when it comes to home-buying and can help deliver your dream home at competitive market rates. They can help keep your wants, needs and budget at the forefront. Find an agent that knows the area and takes time to know you.
Realtors often have access to properties that are fresh on the market, before public listings. This may be a key to finding your perfect home. Your realtor may also be able to negotiate a better price than market listing.
Failure to Inspect a House Before Closing a Sale
No matter how excited you are about finally getting your first home, it is important to have the condition of the house examined by a professional. Most first-time homebuyers make the mistake of closing a sale without checking the condition of the property, which can be a very costly mistake.
Before closing , hire a property inspector, of your choice, to check the state of the house and make a report on any conditions that may be costly or present problems in the future. If you are not satisfied by the state of the house, amend your sales contract before closing. Keep your original budget in mind, if the repairs needed to the home are more than your original mortgage budget, it may be best to move on to another property.
Failure to Look for First-Time Home-Buyer Programs
Most first-time buyers lack the cash flow needed for a down payment right away and end up wasting time trying to save up to meet the down payment. There are several low down-payment loan programs offered by banks and lenders that you can use to start your homeownership early.
There are also state programs that offer competitive rates for first-time home-buyers. Take advantage of these rates, making sure to do your own research on first time buyer programs that are offered before settling into a loan that is not tailor made just for you.
Choosing the Right Lender
Instead of settling for the first lender you come across on your home ownership quest, you should look for a lender who has a strong reputation. Fellowship Home Loans works hard every day to provide real benefits to potential home buyers. Having strong values, Fellowship Home Loans will work with you from the start to make sure your home buying experience is fruitful. We hope to be one of the first to say, Welcome Home!