Looking to move out of your apartment and purchase your first home? If so, you have a long road ahead of you when it comes to purchasing a home. You can make it easier for you by following these 2 tips as a first-time home buyer.
Get Pre-Approved For A Mortgage
If you are starting to look at homes for sale, even if it is casually, you should get pre-approved for a mortgage. It doesn't cost anything to get pre-approved, but it is a crucial step that will help the home-buying process get off to a great start.
You'll Learn Your Buying Power
Chances are that you are unaware of how much buying power you have when looking to buy a home. This could cause you to look at homes that are way outside your potential price range, or at a home that is too small when you are able to afford something nicer. The bank considers all your financial information, such as your debt-to-income ratio and current income, and determines how big of a loan they are willing to give you. Use this amount as a guide for determining the price range of homes to look at.
You'll Have An Advantage When Making An Offer
When you're making an offer on a home that has already received multiple offers, the owners don't always go with the buyer who is offering the most money. Sometimes they pick an offer from someone that looks like they'll get the financing they need to purchase the home. If they are deciding between someone without a pre-approval letter from a lender and someone that has one, knowing how much buying power a person has could ease the seller's concerns about whether the buyer will be able to secure funding.
Work With A Real Estate Agent
You may be doing the majority of the searching on your own, but a real estate agent can still be essential to the home-buying process.
They'll Help Show You Homes For Sale
You want an agent to communicate with the sellers if you want to see any homes outside of an open house. Managing keys and viewing times can be a complicated process, and an agent will help simplify it all for you.
They'll Assist You During The Entire Process
Agents are helpful beyond the search for a home. They'll help let you know about all the important dates that you need to be ready for, such as scheduling your home inspection, the appraisal for the mortgage lender, and when you need to respond to requests from the seller.