American Eagle Realty's Blog
Nothing can quite compare to the emotional cocktail of excitement, fear, and anxiety of being a first-time home buyer. Being a homeowner is made out to be a huge milestone in life, and rightly so. Have you ever signed your name 37 times in a row? It's enough to intimidate anyone. By the end of the entire homebuying ordeal, you will have signed your name so many times that you'll feel like you should have just made yourself a signature stamp. You're in for quite the bumpy road being a first-time home buyer, some highs, some lows and everything in between.
Oh boy, where to start? Did you know your credit score before you started looking for a home? Sure, maybe you have a credit card you keep some line of credit in your name. However, a house? It’s a whole different ball game! What is a good credit score? They did not teach us this in high school, but thank goodness we all know the order of math operations as P.E.M.D.A.S. (parenthesis, exponents, multiplication, division, addition, subtraction) right? What’s an escrow? What if the inspector missed something? When is my first mortgage payment due? You’ll have so many questions about being a first-time homebuyer, so do yourself a favor and get a realtor who can adequately answer all those questions! A great realtor can make the entire process feel like a cool Island breeze.
House shopping honestly is so much fun! Getting to figure out your unique taste in the architecture of your home is a fantastic experience. Sure, there are things that you must specifically look for to fit your needs, after all, you'll be spending the next 20-30 years of your life in this house if you do it right. The day you close on your home is exciting as well, disregarding the whole signing your name a thousand times. The moment comes with a sense of pride and accomplishment that you'll feel on closing day. Looking for your first home can be a long process, and sometimes can take months to years depending on the market. So, when it finally happens, and all the stars line up you can't help but feel a great sense of accomplishment. High five yourself on that day, cause all the stress and worries that you had in buying your first home are finally coming to a close. Now you can focus attention on the fun part: home improvement!
Being a homeowner can be such a fun-filled adventure, but hold on, because it will be a bumpy ride. Let your professional realtor navigate those bumps for you.
Buying your beginning home is one of the significant steps you will make in your life. It can be both exciting and daunting, which cause many first-time home buyers to grab the first home that falls within their budget quickly and others get themselves stuck in a mortgage that they will pay for a better part of the life. Real estate advertisement doesn't make it any easier. Well, you can relax now. Here are six helpful tips to alleviate the burden and mistakes involved in buying your first home.1. First Things First, Be Prepared. As overwhelming as it seems, you must take a moment to get yourself ready before delving into the first-time home buying process. Take a moment and consider the type of home you want, the amount of money available for the purchase, and the amount of mortgage for which you qualify. You also should figure out how you want to go about the search. Do you need a real estate agent? Do not begin the home-buying process until you satisfy these conditions. 2. Carefully Scout for Your Dream Home. The process of searching for your dream home can be very challenging, which is why I advise first-time home buyers to explore thoroughly. Some home buyers, especially first-time home buyers, give up the search after the second tour. They resolve to rent or settling for just about any home on their list. To alleviate the frustration and stress that comes with the search, employ the service of a real estate agent. You could also search for listings online and ask for recommendations from friends and family. Do not do it yourself. 3. What Financing Options are Available in Your State? Although the program varies by state, every first-time home buyer has a couple of financing options to help them purchase their dream home. It is best to consult with your real estate agent for a suitable financing option. 4. Don’t be Scared to Negotiate the Offer. A common mistake seen among first-time home buyers is that they tend to compare the prices of houses at different locations. That is wrong! The locality of any home has a tremendous influence on its pricing. As a first-time home buyer, it is safest to ask your real estate agent for help. The agent is vastly knowledgeable in the field, as such, is in a better position to conclude the sale at a reasonable price. 5. A Home Inspection is Compulsory! Require a home inspection regardless of how flawless the home appears. Be sure to have a professional inspect every nook and cranny of the house before closing the deal. If you find faults that the seller willingly withheld during bargain the sale could fall through. You could also ask the seller to make repairs to seal the deal. 6. Close the Deal or Move on to the Next Home. There are two options available after inspection. You either close the deal or continue your search for your dream home. If the home inspection went well (that is you like what you saw), then it is time to close the deal. Congratulations on your first home!
If you believe you are coming close to the time to buy your first home, you'll want to be informed. It’s never too early to begin preparing for a home purchase. The more organized you are, and the better you have your financial situation in order the better off you’ll be when it comes to the home search. Where should you start? Below, you’ll find some key things that you can do to maximize your chances of finding and securing your first home.
Check Your Credit
Your credit score is one of the most critical pieces of your financial picture. A FICO score ranges from 300 to 850. The higher the number, the better off you are. When you’re getting a mortgage, you want to have good credit. If your credit score is above 740, you’ll be eligible for the best interest rates. If your credit score needs help, a higher score will get you the best interest rates available. Once you get your credit score, (It’s free to get through a variety of services.) aim to improve your score. Pay your bills on time. Use less of your available credit (target to use 30 percent or less of your total available credit.) The bottom line is that a low-interest rate will save you a significant amount of money over the life of your loan.
Refrain From Opening New Accounts
If you’re in the market to buy a home, it’s probably best for you to stay away from opening new accounts. Every store has their credit card and offers deals to open an account in store. While it could save you some money on your purchase, opening new accounts has a negative impact on your credit score in the short term. A car loan, for example, will also affect your credit score because it brings your debt-to-income ratio up, which can put a damper on your chances of getting a mortgage for a low-interest rate.
Save, Save, Save
If you want to buy a home soon, you’ll need to save up a significant amount of money. These savings will go towards a downpayment, closing costs, and furnishing your new place. Every chance you get, you should be putting money away. Include gifts, bonuses, and any other income that’s outside of your average take-home pay.
It’s also a good idea to set up a second bank account dedicated to saving for the home. Set up an automatic transfer each month that will go into that account from your primary earnings. You can d this based on how your employer pays you.
Look For A Real Estate Agent
Your real estate agent will be a crucial part of your home search. They will help in everything from finding the property of your dreams to negotiating the deal to sitting by your side at closing. You should do a bit of research to help you find a real estate agent who can assist you in finding the right property for you.
Ask family and friends for recommendations of agents. You can search for the real estate agent’s name online and see what kind of reviews the agent has and contact different agents. From there. You can make a decision.
Now, good luck with your home search!
Buying a home is a complicated process with a lot of opportunities to make costly mistakes. There’s no high school class to prepare you for buying a home but there probably should be. If you’re a first time homebuyer and you came across this article looking for advice, congratulations--you’re already doing the most important thing you can when making a big financial decision: the research.
In this article, we’ll cover some of the most common mistakes that first time homebuyers make when entering the real estate market. We’ll break it down by the three main phases of home-buying: saving for a home, hunting for a home, and signing a mortgage.
Saving for a home
One of the first lessons that all first time homeowners quickly learn is that being able to afford your monthly mortgage payments doesn’t mean you can afford a home. Many first time buyers are often coming from living situations where certain utilities are included (water, heat, electricity, etc.). Aside from those obvious expenses, there are also things like property tax and home insurance to budget for, both of which may increase. Finally, when you’re living in an apartment and your faucet breaks, you simply call the landlord. When you own a home, especially an older home, be prepared to spend on repairs and to start learning basic maintenance skills that will save you money.
The hunt for your first home
Now that you’re aware of the costs, it might be tempting to jump in and start looking at homes. Another common mistake first time homebuyers make is to waste time looking at homes before they’ve met with a real estate agent or have gotten pre-approved for a loan. Start there, then once you know the scope of your home search, you’ll have a much more relaxing hunt for your new home.
Another mistake that first time homebuyers make is to underestimate the time and commitment it takes to find a home. When you work with a real estate agent, make sure you are available at all times. Keep your phone nearby, stick to your schedule for viewing homes, and keep a list of each home you’re considering. Showing initiative and dedication won’t just help you stay organized, it will also show your agent and the home seller that you are worth their time.
One of the most common mistakes that buyers make when it comes to their mortgage is to fail to shop around for a lender. In fact, the Consumer Financial Protection Bureau found that only half of all buyers considered more than one lender for their home.
Buyers, first time and repeat, often think their credit report is set in stone. What they don’t realize is that the three main credit Bureaus (Experian, Equifax, and TransUnion) can all make mistakes on your credit. Check your detailed credit reports and fix any errors long before applying for a mortgage to increase your chances of getting a good rate.
If you avoid these common mistakes and continue to do your research along the way, you should be able to save yourself some headaches and some money in the long term.
Whether you're looking for your first house, a vacation home, or a retirement condo, there's always an element of excitement in finding a new place you can call your own!
Although buying and selling real estate can be stressful, especially if you've never done it before, being prepared and knowing what to expect can help keep things on an even keel.
Similar to planning a vacation or a cross-country trip, you'll want to avoid missed connections, frustrating delays, and wasted time. When it comes to buying a home, a little research, planning, and expert advice can go a long way toward ensuring a smooth journey. Here are a few specifics:
Check your credit score: Your credit rating has a major impact on your ability to successfully apply for a mortgage and be offered a relatively low interest rate. Knowing your credit rating can help you understand your options, avoid unexpected surprises, and take action to correct errors in your credit report or improve your credit profile.
Prepare a wish list: One of the keys to getting what you want in a new home is to clarify and prioritize the features that matter the most to you. Your checklist can include everything from lot size and architectural style to the reputation of the school district and proximity to stores. Some house hunters also place a high value on features like a fireplace, screened-in porch, and an open floor plan.
Find a good real estate agent: A buyers' agent can provide you with an immense amount of help in finding properties for sale that meet your specifications. They can also provide assistance, advice, and guidance on the many steps involved in going from loan applicant to new home owner. An experienced agent can also negotiate the best possible deal, in terms of price, seller concessions, and other advantages.
Meet with mortgage lenders: A crucial step in preparing to become a homeowner is understanding the mortgage application process, knowing how much banks would be willing to lend you, and determining an affordable price range. Meeting with lenders is also the first step to comparing interest rates and choosing a financial institution that would best suit your needs. Here's a helpful tip from the Consumer Financial Protection Bureau: "Getting a preapproval letter helps you show sellers that you are a serious buyer – but it doesn’t commit you to a lender."
When it comes to searching for and buying a house, probably the best advice anyone could give you is "stay the course!" Let's face it: It's easy to give up, get discouraged, or settle for a home that's less than what you really want. However, when you adopt a "stay the course" mindset, you'll do a better job of staying motivated, focused, and well organized until you find just the right home for you, your family, and your future!