One thing all buyers need to know is that transactions in real estate business are quite complicated. It’s important to hire a real estate agent so that you know what steps to follow when buying a house. Things need to be done in a certain manner within a time limit so that an opportunity does not slip through your hands.
We believe that apart from the general process, the one thing that a real estate agent is very good at is negotiations. Isn’t that what everyone looks forward to when buying a house? A negotiation has the potential to get the buyer the house within their budget. How is that made possible? Through knowledge about current real estate trends and comps.
So, before you start searching for a house, why not think about hiring a real estate agent. Here’s some advice for first time home buyers to help them get their dream house:
List Specific Details of What You Want
Three of the most important things that should be at the top of your list are:
- Type of home
- Location of home
- Age of home
Now write down other things you need and prioritize them. This will help you dismiss houses with frivolous upgrades that are the reason behind the high price.
Look According to Your Budget
There’s an instant connection with the house when you see “THE” one. However, when the house is out of your budget, you have to let go of it. The disappointment cuts you deep. Even if you are prepared to take on a big loan, think twice because you would be paying the mortgage for the next few years and a missed payment could cost you the house.
There’s the 20% down payment that would be required and depending on the appraisal, the price could go quite high. Your eligibility for the loan depends on your credit score, which is another thing you need to consider.
Last but not the least; spend according to your comfort zone. What if, somewhere in the future you lose your job or get into an accident that puts you on bed rest for months. Situations such as these can cause problems in the monthly payments. Just because you can afford the house doesn’t mean you should spend all the money in one place. There are plenty of other things such as repairs and upgrades that are waiting ahead, so it’s better to save now than regret it later.
Make an Offer
Before anyone poaches your dream house, get a pre-approved mortgage letter to make the seller believe that you are a serious buyer.
Before securing a loan, have a look at some of its factors such as total lender fees, penalties on early payment, loan terms, interest rates, monthly payments and time limit.
Close the Deal
One of the most important papers that need to be in your hand when the deal closes is the deed of the house in your name. Allow your real estate agent to read every document that comes across your table, before signing it.
Many buyers believe that going the FSBO route saves them a lot of money. However, unless you have knowledge about the changing real estate trends and access to comps statistics, you cannot buy a house on your own. Since negotiations are dependent on these two terms, it’s better to hire a real estate agent before your dream house is picked by someone else.