Home buyer tips for first time home buyers
1. Interview more than mortgage lender to determine the one you will want to work with. The homebuying process can be a bit frightening, so having a lender that returns calls in a timely manner and takes the time to answer all your questions is very important. Don’t just shop the interest rate. Some lenders give a low rate quote and then make up the difference it fees. It’s wise to get pre-approved before you even shop so you know how much home you can afford and what your payment will be. Some folks try to keep their home loan payment close to what their rent payment is, because they are comfortable with that cost. Surprisingly, most buyers do not spend the maximum amount they are approved for.
2. If you are seriously planning on purchasing a home in the next year, stay away from any large purchases. Cars especially. The amount you spend on a car loan will drastically affect how much you can spend on your payment.
3. Save all your financial records. During the loan process the underwriter will request your W-2’s, pay stubs, bank statements, tax returns and possibly other records. Many people misplace a bank statement or a pay stub and this will cause a delay in closing because the loan will not close until these documents are in the file.
4. Shop neighborhoods. You are not only buying a home; you are buying the neighborhood. If your neighbor’s son practices drums in the garage every afternoon, you will want to know this. Here on the mountain especially we have micro-climates, one side of the lake is very shady and cool, which means the roads are snow covered longer. The other side is sunnier and warmer.
5. Offer an odd number. When the seller reviews your offer, he or she will think you really penciled everything out. Plus, if there are multiple offers, yours will stand out, $187,450 compared to $185,000 or $190,000.
Homeownership is one of the best ways Americans have built wealth, but it is not for everyone. Ask yourself are you ready to stay put for at least a few years. Are you willing to make repairs when something breaks and are you willing to take the responsibility of paying for a large debt? If the answer is yes, then lets get together and find you a new home!