What you need to know to make your big buy
A first-time buyer faces many challenges. There are so many processes, tasks, and criteria that you don’t want to make a costly error. But first-time house buyers benefit from unique incentives designed to attract newcomers to the market.
Advantages Of First-Time Homebuyers
If you are a first-time buyer and do not have the required 20% down payment (for a traditional loan), you may be eligible for state programs, tax benefits, and federally backed loans.
First-Time Buyer Requirements
- A person without a primary residence for three years. As first-time homebuyers, you and your spouse can buy a property jointly.
- A divorced parent who solely owned a home with a prior spouse.
- A divorced homemaker who has never owned alone.
- A person who has only owned a primary dwelling that is not firmly affixed to a permanent foundation.
Questions To Ask Before Buying
Maybe you just want to turn all those “wasted” rent payments into something tangible: equity. Determine your long-term goals and how homeownership contributes to them. Defining your big-picture home-owning goals will help. Consider these points:
Your Financial Well-Being
Do a financial analysis before browsing internet listings or falling in love with your dream property. Be prepared for both the initial and continuing costs of owning a property.
What Home Type Best Suits Your Needs?
Buy a classic single-family home, a duplex, or a three- to four-unit multifamily structure. Depending on your homeownership goals, each option has benefits and drawbacks. A fixer-upper can save you money in any area, but be warned: the amount of time, sweat equity, and money required to turn a fixer-upper into your ideal house may be more than you anticipated.
Do You Want Specific Home Features?
While it’s good to have some flexibility in your list, you’re making may be the biggest buy of your life, and you deserve it to meet both your necessities and desires.
Who Will Help You Buy A Home?
A real estate agent will assist you to find properties that fit your needs and are within your budget. These experts can help you make an offer, acquire a loan, and complete paperwork once you’ve picked a house to buy.
Now that you’ve made the decision, let’s look at what to expect from the home-buying process. It’s a stressful time, with lots of offers and counteroffers flying around, but if you’re ready for the headache (and the paperwork), you can survive it. Here is the fundamental progression:
Locate A Home
Use your real estate agent, check online for listings, and drive around the communities you like looking for for-sale signs. Send out a call to your friends, family, and colleagues.
Pre-Approvals And Lenders
When seeking pre-approval or a mortgage, don’t be tied to your present financial institution: Compare loans, even if you only qualify for one. Fees can be wildly variable.
Make A Deal
Your real estate agent will assist you to decide on a price and any stipulations you wish to include. Your representative will then present your offer to the seller’s agent, who will either accept or counteroffer.
A Home Inspection
Even if the home you want to buy appears perfect, you should have a skilled professional check it for quality, safety, and general condition.
If you can reach an agreement with the seller—or if the inspection reveals no major issues—you should be ready to close. Closing entails signing a lot of paperwork quickly while hoping nothing goes wrong.