Buying your first home is always a nerve-wracking experience. There are applications, endless forms to fill in, negotiations, real estate agents to deal with, and the knowledge that after all your hard work is done, the seller might just change their mind.
If you are going into this process as a first timer, here are a few things that are important to remember.
Rushing Won’t Help
Keep telling yourself that it is a bad idea to rush into a home purchase. The agent and the sellers will push you to make a commitment quickly. Avoid working to a deadline that you are not comfortable with.
Find The Right Loan
Find out if you are eligible for loan support. There are several different government-supported loans designed to help people buy a home depending on your situation.
An FHA mortgage is made for people with low-to-moderate incomes and is supported by the Federal Housing Administration. Depending on your credit score, you may need to make a 10% down payment. You can borrow up to 96.5% of the home’s value.
Do Your Research
Check the current state of the housing market to see if the best time to buy is now. Look at the surrounding neighborhood to see why the asking price is so low.
Hire an independent home inspector to examine the property before you finalize the purchase. They will identify any potential issues in the home that may not have been disclosed by the previous owners or realtors.
You Need A Clear Budget
Examine all your bills, expenses and income to create a clear budget for the next year. There will be more costs after the purchase has been finalized, including fees for attorneys, agents and surveyors. Factor in mortgage and other loan repayments.
Get Your Credit Score In Order
Stay on top of your outstanding debts and repayments before you apply for a mortgage. Loan providers will be looking at your credit history to decide whether you are a viable candidate.
Any gaps in your employment history will need to be accounted for. Any late payments on previous loans will count against you. Avoid taking out any new loans or making any large purchases while you are applying for a home loan.
Always Read The Fine Print
Read every sentence on any loan application or home contract carefully. Loans that offer favorable terms early on may be hiding high interest payments or a schedule that you may not be able to meet.
It is always better to walk away than risk losing your new home to foreclosure. You can renegotiate the terms of your mortgage later but plan for the immediate future.