First time home buyers who are thinking about buying a home may fine the task to be somewhat overwhelming, stressful, and confusing. For first time home buyers, this can be scary if you are not property prepare, and surrounded yourself with professional people who you trust to give you proper direction. Following, are some tips that may be of value when selecting a new home:
Non-listed homes – Talk with friends, relatives and acquaintances to see if they are aware of homes that may be listed in the near future. Once you hear of somebody, contact the owner to start negotiation. This has the possibility of rewarding results.
Homes that fit your home search criteria – Look for homes outside of your ideal home criteria, but may be suitable for you to consider purchasing.
Better deals – Understanding the times within the contract phase when buyer has greater leverage to negotiate a better deal.
Inspections – Always have an inspection done by a license inspector. This is a great time to negotiate for a better deal.
Awareness – Make sure you are aware of all the processes when buying. Be sure to make time to be involved in issues that may arise during this phase.
Lenders – Talk to multiple mortgage lenders. This will improve your chances of getting a better loan for your situation. Remember, different lenders have different programs and options.
Credit score versus loan – If possible improve your credit score. Determine your credit score issues early. Mortgage lenders are able to give advice to a borrower on the best options to raise credit scores. The higher the credit score, the more flexibility the buyer will have when shopping for a loan with the potential to save money. Mortgage lenders offer different rates and plans based on the borrower’s credit score.
Increase savings – As a buyer, talk with a mortgage lender to determine how much home you can afford to buy. From this conversation, determine the amount of down payment options that are available. Then determine the estimated closing cost you will be expected to pay at closing. After this has been completed, your main objective is to save. In addition, saving to cover the above cost, save another 10 to15% to cover unexpected costs and/or move-in cost which may occur.
Lock in interest rate – Talk with your lender when the best time to lock in your interest rate base for your situation. Also, find out if your lender offers an adjustment to interest rate if it goes down.
Changing job – If you dislike your job, this is not a good time to make a job change. This very well could have disastrous results in getting your home, and may very well cause you to start the process all over again.
Credit cards and major purchases: Just prior to starting the home buying process, and during the home buying process do not make large purchases, such as, buying car or furniture, etc. In addition, to do not apply or secure an additional credit card. Doing either may seriously jeopardize your chances of purchasing the home. During this period of time, your goal is to improve your bank account.