A First Time Home Buyers Guide and Tips
Owning a home is a right of adulthood. You might have grown up, dreaming what your future home would look like. You probably dreamed of what colors you would paint your walls and what type of furniture you would furnish the home with. You might have pictured your backyard with maybe a pool or a small fishing pond. You may have added in a large wraparound deck, where you could entertain your family and friends. Home ownership is a common American dream. However, the home buying process can be confusing and intimidating. With the right steps and assistance, you can purchase your first home with little effort, making the best decision for you and your families living needs.
The financing part is the first part of the home buying process. You will have to establish how you will pay for the home. If you will be paying with cash, you will need documentation that you have the cash available. If you will be paying with a mortgage, you will need to apply for a pre approval prior to shopping for a home. The bank will request specific documentation from you prior to offering you a specific pre approval amount. It is important to ask questions and to completely understand the terms of your mortgage. In fact, 59% of homeowners wish they understood the terms and details of their mortgage better.
After a pre approval is given, you can begin shopping for homes. This can be the fun part. A real estate agent can be helpful in locating properties that match your requirements and they may be necessary in showing the homes and in submitting any offers. 78% of recent buyers found their real estate agent to be a very useful information source. Online websites were seen as a very useful information source at 82%. It can be helpful to narrow down the type of home you are looking for. If you prefer a classic community is a desirable location, you may need to specify these requirements with your realtor when they provide you with a list of homes for sale. Pricing will also factor into the properties that you choose to look at.
You also have the option of residential homes versus condo type living. A classic community may consist of both types of homes. If you prefer low maintenance living, a class community home that you are not responsible for the lawn or the snow removal, you may prefer something like luxury townhomes. A house for sale generally requires the homeowners to be responsible for things like landscaping and the snow removal.
It may seem that house searching would be easier with the emergency of the internet. However, too many homes tend to overwhelm the buyer. The typical buyer who did not use the Internet during their home search spent only 5 weeks searching and visited 5 homes, compared to those who did use the Internet and searched for 10 weeks and visited 10 homes. The more homes that you see, the more difficult the decision process becomes.
Once a desired property in a classic community is chosen, the real estate professional will work with you on how much to offer. This is the negotiation process and it is very important. You could lose the house during this process if you offer to little. If an offer is accepted, the mortgage company is contacted and the process begins. A closing date is set, where you will meet with the sellers and you will both sign all of the necessary paperwork and be handed the keys.
Owning a home is a part of the American dream. It can, however, also be an overwhelming and confusing process. It is important to work with both a great mortgage company and an experienced real estate professional to make the entire process easier. You should also narrow down your home requirements, such as a home in a classic community, to make the home search process easier. If you also follow the listed steps, you will be on your way to owning your first piece of property.