It can be a challenging but very exciting time for you if you are a first-time homebuyer. You can learn a lot from mistakes committed by others and avoid them to make it a smooth ride for you. Here are top 4 tips to make sure that you can iron out wrinkles and make it a successful exercise for you.
1. Start your buying exercise after checking your credit
You credit plays an important role in securing the mortgage form the lender. It also decides the rate of interest charged by the lender. There is no need to approach a lender if your current credit score is below average. Try to improve your credit to secure a good deal from the lender. You can bargain with the lender when you have a good credit score.
2. Be wise moneywise
Buying a home is the biggest financial transaction of your life. It involves a lot of money. You must put forward a sizeable amount of money in the form of down payment. You also commit to pay monthly installments to your lender for a long period. You should save as much amount of money as you can in your bank account before starting your house hunt.
3. Get pre-approval from a lender
Many individuals start their house hunt without knowing how they will arrange the financing for the purchase. Many deals in the past have fallen apart because these buyers could not get the mortgage for the required amount form the lender. It is prudent to submit your financial statements and credit report to a lender and get his pre-approval to know how much money you can get for the purchase of a home.
4. Find a good quality real estate agent
Many first-time homebuyers think they don’t need to hire services of a real estate agent as they have enough information available on the net. They think they can save on the commission of the agent in this manner. The fact is that the commission of buyer’s agent as well as seller’s agent is paid by the owner of the property. The skills and experience of a buyer’s agent can help in removing the hurdles form your path. He can not only help in finding the right home but also negotiate on your behalf with the seller’s agent.