If you are a first time home buyer, there are a lot of things you need to know. If you are thinking of getting a mortgage, it is crucial to understand that not anyone can get a mortgage today. There are a few qualifications.
In this article, we’ll help you prepare yourself when buying a house. Here are some things and tips you need to know.
Prepare for a Sticker Shock
You might get the shock of your life when you are preparing to buy a house this year. Prices of homes have soared so high in several parts of the country if compared before.
If they haven’t yet in your area, there’s a high chance that you will need to pay a lot more since the property you plan on buying has a strong demand and limited inventory. Expect that you will be shelling a lot of money if you want a house this year.
If you have already found your dream home but it’s too expensive for you, it is best to get pre-approved with a mortgage lender or a bank as soon as possible. If you don’t have any, real estate agents will downright ignore you.
It’s pretty easy to get a mortgage pre-approval so have more confidence in yourself.
Check Your Credit Scores
While you are looking for a house, it is best to check all of your credit scores. This way, you will know earlier if there is anything that you have to address. Credit scoring can be time-consuming, so you have to give it more time and check your credit score earlier. Avoid waiting until the last minute when it’s too late.
Inventory Can be Limited
Ever since the market bottomed years ago, inventory for homes has been lacking. This is because houses are never for sale in high number. You’ll have fewer options, too. Prepare yourself for that.
Negotiate With the Seller
This year, go into a bidding war with your seller and win it. Afterward, inspect your house. Be very careful in inspecting. It will determine any problem that needs to be addressed once the home changes hands. You might be in a difficult position to ask for credits for the lower purchase price and closing costs if you don’t do a quality inspection. It is best to check and recheck rather than regret it later on.
Do Your Homework
Remember not to neglect to research for a mortgage and VA loans El Paso. Always shop around with other lenders, banks, credit unions, and mortgage brokers before settling with your real estate agent’s preferred lender. You have to make a choice yourself.
Lastly, before buying a house, it is best to take some time and make sure that you want to buy a house and stop renting. Time and again, it is said that you may just as well be throwing your money by renting. However, renting a place also has its advantages.
You don’t need to pay any PMI, HOA dues, homeowners insurance, property taxes, and mortgage interests.
If something is wrong, you can call the property management company or the landlord to fix the problem for you.