Are you nervous about buying a home?
A home is probably the single biggest investment you'll make in your lifetime and so as a buyer, you have good reason to feel uneasy, especially in a crazy market like we are experiencing right now. With an unpredictable economy, a mortgage crisis and record foreclosures, the commitment to buy can be overwhelming for many people.
Relaxed lending standards in recent years had eliminated some of the most common obstacles to qualifying for a home loan, but now, in changed times, lenders are once again getting picky - and for obvious reasons!
The good news is that for those who qualify for a mortgage - those with a steady income, strong credit and a modicum of savings - this is actually a good time to purchase a home. Mortgage rates are still low, and home prices have been declining in most parts of the United States. That's what is known as a "buyer's market."
To help you navigate the uncertainties, especially if you're entering the market for the first time, The Corekin Team would like to share with you 10 tips for buying a house:
Tip #1. Find out how much you can afford, and stay within your budget.
This is so important! Don't overreach. Focus on finding something that will offer affordable monthly payments and a debt load you can comfortably handle. You will want to consult a local lender or check out on-line mortgage calculator sites for more information. In order to make an offer on a house, you will need to be preapproved. The preapproval process tells you exactly what you will have to pay. Preapproval also provides some extra peace of mind, ensuring that when the time comes, you'll have financing in place. This is the #1 most important issue for real-estate agents, sellers and buyers!
If you're planning to buy, your household budget should allow for hefty savings toward a down payment, unless you're expecting a generous gift from a family member. The days when first-time buyers could purchase a home with a down payment of less than 10% may be slipping away, although there are still some low-down programs likes VA or FHA.
"First-time buyers must come to the table with some dollars," says Ilyce Glink, the author of "100 Questions Every First-Time Home Buyer Should Ask" and "100 Questions Every Home Seller Should Ask." "You need more income, a better credit score and to think about how much debt you can carry. It has become a more difficult process."
If you would like to discuss any of the above information or would like additional information on any real estate related issues, please contact The Corekin Team!
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