First time property owners will learn a lot during their first home purchase. It will be one of the largest if not the largest purchase they will ever make. Purchasing a home is not done frequently and even if the purchasers have purchased a home before, it was likely years ago and they do not remember the steps. Below are a few tips on purchasing a home for the new or inexperienced home buyers.
Ask for Help
If the home buyer is not familiar with the purchasing process, they should consider getting a real estate agent. The real estate agent will help with all the steps necessary and will make sure everything is done at a minimum standard. Home buyers should find these real estate agents through referrals and then should research and interview them to get an understanding their experience and expertise.
New home buyers should not only shop around for their real estate agent, they should also be figuring out their options for loans. Every lender will have a different rate, closing costs, and other aspects to them that should be evaluated. Once the home buyers have chosen their lender, they should get a pre-approval letter stating the amount they are approved for and the estimated loan rate. This letter will help in the process of making an offer on a house.
Once the home buyer finds a property that they have decided to purchase, they will make an offer on the house. This should be based on the fair market value of the home based on other homes sold in the area. It should also include the terms of the closing costs. Home buyers should make sure not to bid too high on a property because if the home does not appraise for the purchase price, the lender will not approve the loan.
Home Inspection and Appraisal
The home inspection is an essential part of the home buying process. This will reduce the risks of purchasing the property and allow the buyer to negotiate any repairs before the home has actually closed. It is best to be present during the home inspection process in order to get a better understanding of the home and to ask any questions that come to mind. The appraisal will determine the worth of the home, which the lender will use to approve the loan. The home must appraise for more than the loan, otherwise, the home buyers will not be purchasing the home.
These were a few out of the many tips that can be provided when purchasing a home. The first tip, asking for help, will be the most important since a real estate agent will be able to offer more advice and answer any questions during this process. Comment below with your thoughts and follow me on twitter!