If you’re reading this article, you are more than likely purchasing your first home or are at least interested in taking the first steps toward that goal. That’s something to be proud of.
Southern Trust Mortgage knows that buying a home can seem difficult for a first-time buyer. You are faced with an endless list of tasks, steps, potential fees, and requirements, and you might be left wondering whether or not you’re making the right decision.
You are certainly not alone in your concerns. Buying a home is an extremely emotionally and mentally taxing process. However, with the right amount of preparation and knowledge, you can relieve a great deal of stress.
We’ve compiled the five most beneficial tips for first-time homebuyers to help you navigate the process, save money, and close the deal like a pro.
ANALYZE YOUR FINANCES
Before purchasing your first home, you must determine if you are financially ready. Many first-time homebuyers need to realize the costs involved, such as home repairs and utility costs.
You will also be responsible for taxes and insurance for your new home. If you are financially prepared, you could avoid a less-than-ideal situation.
Try to reduce your debts as much as possible before applying for your mortgage loan, and dedicate a few months or years to saving as much as possible for your potential new home.
In general, the costs you will need to consider when saving for a home are:
- The Down Payment
- Closing Costs
- Moving Expenses
Once you are satisfied with your finances and what you can afford, you’ll be ready to move on to the fun stuff!
MEET WITH A LOAN OFFICER TO GET STARTED ON A MORTGAGE
In most cases, people need a mortgage loan to purchase a home. There are many types or mortgage options to fit nearly all individual situations. However, the variety of options can make it challenging to determine which loan product will best fit your needs.
This is where loan officers become mortgage lifesavers. They will assist you in choosing the loan product that is right for your unique situation and guide you in applying for it.
At Southern Trust Mortgage, our highly skilled loan officers strive to make every home purchase as simple as possible. They work tirelessly to get you to the finish line and close your loan on time. Take the time to choose a loan officer who makes you feel comfortable and best fits your needs. We want you to feel supported throughout the mortgage process.
FIND A GREAT REAL ESTATE AGENT
You want to do your research and choose a real estate agent who has your best interests at heart and who you enjoy working with. It’s a great idea to get references from family and friends. You should also keep an eye out for a real estate agent who is a Realtor with a capital R. This means they are a member of the National Association of Realtors (NAR) and have formally agreed to abide by the group’s code of ethics.
When it’s time to start viewing homes, ensure that you have a pre-approval letter from your trusted lender. A pre-approval letter provides the maximum amount you can afford and will help show sellers and real estate agents that you are serious and committed to the process.
Feel free to meet with several real estate agents so that you can make the best decision for you.
Also, real estate agent costs and fees are often embedded into the price of the home, so their compensation comes in the form of a commission taken off the top of the sale proceeds. In other words, you won’t have to set aside any extra cash for their services!
GET A HOME INSPECTION
So, you found a property that you are serious about. You make an offer on it, and it’s accepted! Consider whether a home inspection is worth the extra money. The short answer? It is.
Repeat after me: “You should always get a home inspection before purchasing a new home.” Many first-time homebuyers take for granted the importance of a thorough home inspection. We admit this part of the home-buying process is not very exciting but very important. Most lenders only offer financing with an inspection, so it is in your best interest if you are serious about the property.
A home inspection is completed by a licensed professional who determines the status of the home’s major systems, utilities, and cosmetic issues. Your home inspector will let you know about any major and minor problems with the home and uncover potentially life-threatening problems like mold or faulty wiring.
As a rule of thumb, most potential buyers have a seven-day window after a home inspection to walk away from the deal.
As we have discussed, a lot goes into buying your first home, and it is crucial to ensure that your home is in good condition before you close. That way, you won’t have any unexpected surprises after moving in.
MAKE SURE TO HAVE PHYSICAL COPIES OF IMPORTANT DOCUMENTS
In the age of technology and online storage options, printing your essential documents might seem a bit primitive. However, storing the hard copies of your mortgage statements, Deed, Closing Disclosure, and other documents in a locked, safe place is always wise.
You should also inform anyone else on your mortgage or your next of kin where the documents are in case of an emergency.
Although there is a lot to consider, if you do your research and go into the home-buying process prepared, you’ll be well-equipped to make your first home purchase a success. Being a first-time homebuyer is an exciting stage in life. Enjoy it!
If you’re shopping for your first home, explore your options with one of our experienced Southern Trust Mortgage loan officers today!
