When you buy a house you enter into a long term relationship that is full of ups and downs. Before you commit to the 15-30 years of home mortgage payments, here are some things you should consider as a first time home buyer. Attention to these details will help ensure that you have a less stressful, more enjoyable experience when buying your home.
Don’t start your journey going backwards. Many people start looking for houses before they ever consider the funding they will need going forward. There’s nothing fun about finding the house of your dreams and finding out later than it’s one you can’t afford. To lessen the chances for this happening, you’ll want to apply for a pre-approval on a home mortgage loan. This approval will let help you zero in on your target price range and make you look serious to sellers.
Your credit history is important and will be considered when you apply for a home mortgage loan. What you may not realize is that everything you purchase during the time around your home loan will have an impact on their decision. Purchasing large ticket items such as a vehicle will change your income to debt ratio. Lenders use this to determine if you are credit worthy and have the ability to repay the loan at your current salary.
There are fees associated with buying a home that go beyond a down payment. Closing costs are paid out-of-pocket by the home buyer unless there is an agreement with the seller. The term closing costs is a broad term for fees associated with services during the home buying process. The lender will want to make sure the property is priced correctly. They will order an appraisal for this purpose. Inspections will be completed for things associated with the structure of the house, pests, and systems. A title check will be completed, and there are other fees associated with the attorney used during the transaction. Make sure you have enough in your savings to cover these costs.
In some cases, the seller may agree to pay all or a portion of the closing costs, but don’t bank on this fact. Being willing to pay the closing costs could make your offer more appealing to a seller if your offer has competition. Your real estate agent will help you come up with an attention getting offer and help negotiate terms.
Be prepared for other costs that could include a good faith deposit, homeowner’s insurance, and home association fees. There may be fees associated with utilities, trash disposal, and other hook-ups associated with the house and property. Be prepared for regular maintenance on the home, repairs that will pop up, and things like property taxes. You should take a good look at your savings and make sure you are ready for that responsibility.
Buying a home is an exciting adventure that takes time. Be prepared for delays that will crop up when it comes to things like competition with your offer, inspection findings, and service delays. Your emotions will be charged at times, and you could find yourself sitting on edge waiting for news to see if your offer was accepted. Try to remain calm and keep your balance. If the offer falls through, you will suffer some negative feelings, but don’t let that stop you from continuing your search.
When your offer is accepted, the process of appraisal and inspections will begin. Rely on your real estate agent to walk with you through the entire process. Their experience, knowledge, and negotiation skills will help bring your transaction to a successful closing. Once you reach closing day, you’ll sign the papers that begin the next chapter of your life. That is a day worth celebrating!
You are not alone when it comes to the home buying process. Call Brad Gilboe today (1-818-632-2296) to learn more about buying a house and to tour available homes for sale in the Los Angeles area.