January 21, 2020
Buying a home is such a huge task, but thankfully, there are numerous tricks that you can use to make sure that you survive the entire process. Whether you have no clue about how to get a mortgage, how to look for the house of your dreams, or even how to find a real estate agent, there are tips that will have you looking like a pro in no time at all!
20 Tips for First Time Home Buyers in 2020
1. Pre-Qualify for Your Mortgage Early
You might not be ready to search for a house yet, but it is still a perfect time to get pre-qualified for your mortgage. Taking the time to secure the financing in advance will ensure you know exactly what you can afford. While being pre-qualified is not a guarantee you can get a mortgage, it is a step in the right direction.
2. Tackle Your Debt
Everyone seems to have some sort of debt and you must tackle that before you get too far into home buying. The reason for this is you may not receive approval if you have too much debt. Debts that you should work on will include student loans, credit cards, car loans, and personal loans. Try to get these debts as low as possible for the best results.
3. Never Take on More Debt
When you are in the process of buying a home, you should never take on any new debt. This means you cannot make any large purchases, apply for a new credit card, or close any credit accounts.
5. Keep an Eye on the Market
The market is constantly changing when it comes to home buying, so it is necessary to keep on eye on the numbers. Zillow is an excellent place to start, because it will give you a general idea of what is available at what price. It will also tell you how much the numbers have changed over the last month.
6. Meet People within the Real Estate Industry
You may not be ready to go out and start looking at homes, but that doesn’t mean that you shouldn’t start checking out real estate agents. The same goes for mortgage brokers, because you can call them both and ask questions until you finally feel ready to start the process.
7. Save Some Cash Whenever You Can
This is not the time to go out and buy a new car or the latest gadgets. It is also not the time to replace your entire wardrobe. When you are planning to buy a home, you must try to save money as much as possible. This extra savings will come in handy for a down payment and it will look better if you savings account is as high as possible.
8. Choose to Be Organized
It is so easy to bring home papers from a mortgage broker or real estate agent and simply start piling them up in different rooms of your home. However, if you take the time to get organized from the beginning, you will never need to worry about losing a piece of paper when you need it the most. Start a binder, or at least a folder, to keep everything in and then put it where you know you can find it.
10. Never Hesitate!
In the world of real estate, hesitating for one second can mean the difference between owning the home that you love and needing to continue to search, because the house of your dreams was sold to someone else. While you shouldn’t rush as a first-time homebuyer, you also shouldn’t take too much time to make a decision.
11. Never Settle for Second Best
You may think that since a house has one or two of the things on your wish list that it will be the house that you will want to live in forever. The truth of the matter is that if you do not think it is your dream home right away, you will never love it in a few short months. This same concept holds true for mortgages as well, so err on the side of caution when choosing those as well.
12. Lock in Your Rate
If you are looking for the best terms for a mortgage, you will want to lock in your rate as soon as you can. It is best to obtain a rate lock instead of a rate quote, because the quote will not be guaranteed for too long.
13. Learn How to Negotiate
If the market has been slow, it is good to put your negotiating skills to the test. Doing this could mean the difference of paying full price or getting a house for a few thousand dollars or more below the asking price. You should never offer a lowball number, but you can ask to pay a reasonable amount less and negotiate from there.
14. Always Know Your Rights
As a homebuyer, you have many rights that you should be aware of. Those rights include being able to shop for the best loan for your needs, being informed about the total cost of your loan, and being able to ask for all estimates of future charges. You are also able to ask questions about anything you do not understand, get a mortgage decision based on your earnings and not your race, sex, or religion, and be told why your mortgage was denied.
15. Consider Your Future
You should always consider your future before you purchase your first home, because where you will be in a few years can change your circumstances considerably. Will you have the money for both the mortgage and needed repairs? Will you be moving sooner than later? Will you be able to resell the home and recoup what you have put into it?
16. Choose a Home Inspector that has an Excellent Reputation
Some home inspectors will go to a home and say everything is fine without looking at much of anything. That is not the type of home inspector that you want looking at your home, because they will miss many things that could be wrong. A reputable home inspector can save you thousands of dollars when they do the inspection properly.
17. Consider the Areas You Want to Purchase a Home in
You may think that you want to be close to a school, but have you taken into account the extra traffic at the beginning and end of the school day? What about the traffic from extracurricular activities? How about the noise at recess time? Every house will have its pros and cons with its location, so you must take those into account as you are making your decision.
18. Don’t Share You Love a Home with the Wrong Person
As a homebuyer, you should never let a homeowner know that you love their home. Doing this will put you in a position where you cannot negotiate a lower rate and you may even end up paying more.
19. Always Accept Help
There is no stupid question when it comes to buying a home, which is why you should always ask questions. You should also accept help when it is offered, because it can mean the difference between success and still looking.
20. Ask as Many Questions as You Can
If you are going to buy a home, ask as many questions as you can. If you are not asking questions, you are missing something, and the entire experience will not go as well as it should.