Tips for First Time Home Buyers
Looking to take advantage of home prices and interest rates before the market surges back up? The Alpharetta movers have a few tips for you on the home buying process and how you can navigate buying your first home with as little stress as possible. Pending home sales hit a six year high this year, so time is of the essence to purchase your dream home and becomes a homeowner today. We will break it down into five easy steps to help you stay sane on the path to owning a new home.
Get pre-qualified for a mortgage. The first step to house hunting is to obtain pre-approval from a mortgage lender. This is an important process because it not only shows that you will be able to make an offer when the time is right, but you will also know your budget and estimated amount for the loan you can obtain. Learn the numbers on what your monthly mortgage payment would be, and also factor in things like homeowner’s insurance, property taxes, association dues, and any fees associated with buying and moving.
Find a realtor that you trust. There is no shortage of licensed real estate agents, but you should not work with just anyone. Find a realtor who understands what you are looking for, and whose personality you mesh well with. You will be working with them and at times you might feel overwhelmed or stressed out, and you want a realtor with patience and clear communication skills to help you get over obstacles along the way. Also, make sure they are a member of the National Association of Realtors.
Choose the right mortgage for you. In some areas, first time buyers can obtain a mortgage loan that requires little money down, known as a Federal Housing Administration (FHA) loan. They require a 3.5 percent down payment (extremely low) and may be easier to qualify for. There are also options between fixed rate mortgages and adjustable rate mortgages, which your broker should be able to explain, differentiate, and recommend accordingly.
Make a significant down payment. Making a larger down payment (20%) will prevent you from paying private mortgage insurance, which is an insurance plan for borrowers if they cannot make payments or are not ideal borrowers who may get stuck down the road. If you struggle to meet the 20% mark for a down payment, then it is better to pay for the mortgage insurance rather than deplete your savings.
Resist the urge to shop. Your credit report will get pulled—likely several times—in this process. Hold off on buying big ticket items and using up available credit. It might be difficult to resist buying new items for your new home, but it will help you in the long run to exercise patience.