Buying a home is a major financial and personal decision for many. You can make it happen with a little knowledge. All it takes is three steps: Get ready to go, get set, and get ready!
Tips For Buying A Home
1. Get ready
Are you ready to become a homeowner? If you are motivated, you can easily find the time and energy required to buy your first home. Money is not the only thing that matters. You might not find it as daunting as you think. When you have a budget, you will know how much you can borrow and what you can afford. Then you are on your way to homeownership. These are the three steps to get you started on your journey to homeownership.
Be sure you’re credit-worthy
Your credit score is the first thing you need to know. Your credit score is a key factor in determining the amount you can borrow and what interest rate you might be eligible for on your mortgage. Make sure your credit scores are as high as they can be before you apply for a mortgage. A lack of credit history and high credit card balances may make it difficult for someone just starting out. Credit cards and unsecure debt should be paid first. Student loans and car loans are usually less problematic. This can be a huge advantage when you establish credit history by paying your student loans on time. The amount of down payment that you will need to make can be affected by your credit score.
Establish a Budget
Next, calculate how much you can borrow and what you will pay each month for a mortgage. You should create a budget that is based on your income, even if you expect an increase, and all your monthly expenses including student loans, car payments, and health insurance. Understanding that monthly mortgage payments are only a part of monthly housing expenses is important. Additional costs such as homeowners insurance, maintenance, utilities, and property taxes will need to be estimated. These will only be estimates until you find your dream home. However, accounting for these costs first will allow you to set a realistic price range.
Make a down payment
Consider your down payment. You should consider paying a downpayment of 20% of your total purchase price if you can. There are also more affordable options, which can be as low as 3.5%. The options available to you will depend on your financial situation. Consider the closing costs. You will usually pay the first year’s homeowners insurance one year in advance. The closing costs include title insurance, title fees and recording fees as well as loan origination fees. To find out how much down payment you can afford, consult a mortgage advisor as soon as possible.
2. Get set
Once you have a good idea of your budget and your borrowing power, it’s time to start making your next moves.
Get a mortgage preapproval
The first step to applying for a mortgage is to contact a lender. After you have done your budgeting, you will need to be preapproved for a mortgage. You could lose your chance of buying the house of your dreams if you wait to apply for a mortgage until you have found it. You can get a mortgage preapproval to determine how much house you can afford, what your interest rate is and which loan programs you are eligible for. Lenders will only give you the amount you can afford to make monthly payments towards your mortgage. This will help you to set your price range and speed up the mortgage application process. You can then make an offer quickly. Before you start this process, take the time to gather all of your financial documents (such as tax returns) and track mortgage rates. This will allow you to spot a good deal and get the best loan possible.
Select a mortgage lender
Find the best way to get a mortgage and secure the right option for you. Consider your current credit score, time frame, and type of home.
Find the Right House for You
Check the internet to find the right home for you. Many real estate websites will connect you with the brokers who can arrange times for you to see the homes that interest you. You will need to trust your real estate agent to guide and teach you as a first-time buyer. They will be familiar with the area and can help you negotiate a fair price for your house.
This is the right time to move forward. After you have found the house that suits your needs, it is time to meet with your broker and make an offer.
Make an Offer
Once you have found the perfect property, make an offer to purchase it. Your real estate agent in Myrtle Beach can help you decide what price to offer. To help you make an acceptable offer, they will compile sales data and compare other local property values. The agent will also prepare an offer letter that you can submit to the seller or seller’s representative.
Closing On Your First Home
A closing date will be set once this has been completed. The closing is usually scheduled within one month of your offer being accepted. However, it may take longer to schedule the closing (which your agent can help you with). To ensure that all fees and upfront expenses are covered, it’s a good idea to consult your mortgage broker as well as your realtor before closing.