Purchasing your first home could be an overwhelming experience. The process of buying a home exposes you to a financial experience that can be intimidating. To ensure that the process of buying a home goes smoothly, first-time homebuyers should do considerable research before beginning the process. Below, we’ve provided tips for first-time homebuyers.
Work With A Buyer’s Agent
Working with a buyer’s agent will prove to be one of the best investments you can make during the purchasing process. An agent is worth the while because of the time that you’ll save. You can send numerous parameters to your agents, such as what you’re looking for in the home and the terms of your potential mortgage. Then, the agent will send you listings that meet your criteria.
So, for instance, imagine you’re interested in the USDA Loan program, which has strict location parameters. Your buyer’s agent can determine if a home is eligible for a USDA Loan, allowing you to focus your search on homes for which you’re eligible. There’s nothing more frustrating than viewing a house and falling in love with it, only to realize that you can’t purchase it and must restart the process. A buyer’s agent prevents this from happening.
Since first-time home buyers have secured a mortgage before, many experts recommend that they seek pre-approval before beginning the home search. This allows you to know how much money you’ll need to put toward a down payment and the value of the home for which you should be searching. Again, this can save you considerable time and can help streamline the buying process significantly.
You’ll also likely find that many sellers will not consider an offer unless the buyer can demonstrate loan eligibility. Your buyer’s agent can refer you to a mortgage broker. You can work with that individual to determine your eligibility.
Don’t Settle On An Offer
Many first-time home buyers feel that the price the offer must be the price for which they settle. Before making an offer on the house, first-time home buyers and their agents should negotiate with the seller. Remember that the seller, too, is in negotiation. They have set a high bar because that is the selling point they wish to obtain. However, most know that their home won’t sell at the listing price.
Your agent will likely have access to pending sales in your area, not just deals that have already closed. This could help give a more accurate portrayal of the home’s value. Sellers may be willing to work with these prices. Don’t hesitate to ask about negotiations with a home’s seller.
Perform A Home Inspection
In some states, you may need a home inspection before closing on a home. However, we recommend that all first-time home buyers hire an inspector. If your home inspector discovers faults in the house, your seller may not necessarily have to fix them. However, your seller may be willing to deduct from the final price. You’ll have to pay for the repairs, but you won’t spend as much out-of-pocket for the home.