Buying a home for the first time is one of the most exciting things a person will ever do. If you've lived in apartments for a long time, there's nothing better than owning your own home. The process can take a while, and you might run into a few problems along the way. The following tips will help a person who just bought their first home avoid some of the problems.
First, talk to a real estate agent about how to go about buying a home. It shouldn't be a sales meeting, and you should be able to find a real estate agent who will meet with you to talk about the basics without making you sign a sales contract. If you can't find a good agent to talk to, you might want to talk to a loan officer at your bank or a mortgage broker.
Another important thing to do before you apply for a mortgage is to get your finances in order. Get a copy of your credit report so you can make sure it's correct. People often make mistakes, and you want to make sure there is no fraud. You can ask for changes to your credit report if it has mistakes. If you see something that you know is wrong, circle it and send it to the reporting agency with a letter saying that you disagree with it.
Next, you really should learn about the mortgage business. You should be able to find the best loan and lender for your needs. Learn terms like "debt to income ratio" and "adjustable rate mortgage" that are used in the industry. Find out the difference between being "pre-approved" and being "pre-qualified." At first, everything will seem strange, but taking the time to learn the business will save you a lot of trouble in the long run.
You also need to know what you want and what you need. What kinds of conveniences do you want? How many are there? Home with one or two stories? You also need to think about how much the down payment will be and how you'll get the money for it.
You need to learn how real estate agents do their jobs. There are agents who help people buy and sell things. A buyers agent's job is to get the buyer the best deal possible. The seller's agent's job is to get the best price for the seller. Asking your friends for advice is the best way to find the right agent. They have probably all been in your shoes, so they can probably give you a good real estate agent's name.
Pay attention to how a possible agent treats you when you meet with them. Make sure that they listen when you tell them what you want. Also, how good are they at following up? Do they answer your phone calls and emails? If they don't answer, it's time to move on. You should look for a better agent.
When looking for a place to live, you should think about all the options. Look up the websites of real estate agents. Don't rule out homes that are "For Sale by Owner" or that have been repossessed. Homes from Housing and Urban Development (HUD) are often available for very low prices. If you want to buy a home this way, you do need to find an agent who is approved to sell HUD homes.
Before you even think about making an offer, you need to think about how much it would be worth if you sold it. You might plan to stay there for a long time, but you never know what will happen. You could choose a different climate to help with your allergies, or your company could just move you. You should choose a good spot that will also be appealing to other people.
The deed restrictions, which say what you can and can't do with the property, are also something you can't ignore. If you've always wanted a pool, make sure you don't buy a house in a subdivision where you can't have one because of deed restrictions.
Home inspections are a key part of the process. Find out when the inspection will be done by talking to your agent. It's different in each state. Some inspections happen right before the contract is signed, while others happen right after an offer is made.
Lastly, make sure you know what's going on. Any number of problems can come up at the last minute and stop you from buying a house. Don't be afraid to ask questions about the paperwork if you don't understand something. You might come up with something that no one else has.
Buying a home takes a lot of time and can be frustrating at times, but it's worth it when you have barbeques in your backyard.
