Home Buying Tips, pt. 1
Whether you are a first time homebuyer or you are a seasoned real estate pro, buying a home is always a big decision. This two-part post will give you some valuable tips before starting your home buying search.
Check your credit scores. Before you start your home search, get copies of your credit report and check for any inaccuracies and fix any problems that you find. This step may delay your actual purchase for an amount of time, but will significantly help you save a lot of money down the road with improved interest rates.
How Much Can You Afford?
The price of the home that you can afford depends on many factors including your income, expenses, and credit scores. In addition to using mortgage calculators, make sure to check with your financial advisor for help determining a price that is comfortable for you, that will allow you to comfortably pay for your mortgage and includes all of your other living and entertainment expenses.
Find a Good Agent. The professional help of a real estate agent can really help in the buying process. Make sure to evaluate references of previous clients and make sure that he or she is responsive and available to you. You may not know exactly what you want in terms of a new home, and your agent should work with you to determine your needs and help you find a property that meets your immediate and future needs. Your agent should be familiar with the area where you plan to move. Talk to your family and friends for successful agent referrals. Ask them how satisfied they were with his/her services and if they would use them again.
Your agent will work with you through the entire home buying process, from start to finish. Your can offer valuable guidance and negotiate on your behalf with the seller. Your agent will also work on necessary contracts, agreements, and work with all of the required and inspections for a smooth closing.
Get pre-approved for a loan. This step shows sellers that you are really serious about buying their real estate and that you are financially able to do so. Pre-approval simply means that you have worked with a lender to determine the maximum loan amount that you can obtain with that lender. Pre-approved buyers have several advantages, including increased negotiating power, since the seller knows that you can complete the transaction. This important step can make a difference when sellers are considering your offer.
Even if you don’t have the traditional 20% down payment for a new home, there are many home buying programs available that may offer some assistance. Research available mortgage programs with your financial expert, mortgage broker, or talk with your real estate agent.
The next segment will cover the next steps to take once you've decided that now is the time to buy.
Home Buying Tips, pt. 1
In order to help any concerned first time house buyer let's make a point here. Working as a Realtor in Toronto I've witnessed in my professional experience some serious errors made by first time house buyers. I'm not stating that it is absolutely crucial, however the best what you can do is get a real estate agent do do the necessary market research, to chose a few houses for you to consider and to help you adjust all the variables. Author of the article did a good enlightenment in this field.
Posted by: Toronto realtor | March 25, 2008 at 11:28 AM