First Time Buyer Tips You Should Know

Posted by Gurpreet Ghatehora on Thursday, April 24th, 2014 at 2:22pm.

Save more than you need
There are a lot of miscellaneous costs that come with home buying. One of the most important first time buyer tips you can get is to reinforce your savings account. Between lawyers’ fees, home inspections, moving costs and down payments, the cost of home buying stacks up quickly. Many first time buyers do the basic mathematics to decide what their price range is and what they will need for a down payment, but few realize the additional costs associated with the process. If you need $10 000.00 for a down payment, make sure you have at least $13 000.00 before going to get a mortgage preapproval. Although you may have the required down payment in place, if the bank does not see that you can finance your closing fees, they may reject your application.
Get a Preapproval
Don’t go shopping the real estate market completely blind. As far as first time buyer tips go, knowing what you can reasonably afford and what the bank is willing to lend you is the linchpin to your whole dream of home ownership. A preapproval means the bank has approved you to shop within a certain price range, based on you income and credit, and has set an interest rate for you. A preapproval is also reassuring for your realtor and any seller you may make an offer to. This process will narrow down the homes you look at it, making it more manageable and realistic to find your first home.
Trust your agent
Your realtor will be a wealth of first time buyer tips and information. They can recommend lawyers, moving companies and will know other realtors too, which could give you a head start on homes before they hit the market. Having a realtor with a lot of connections is a bonus for any buyer, and trusting in their experience and know-how will only make your shopping experience more enjoyable. You will certainly have questions, from paperwork to timeframes, and what’s normal and what’s not in the home

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