7 Tips For A First Time Homebuyer

Homebuyer tips
3548

Written by

Published date: Feb 08, 2016

Updated: Sep 12, 2023 by Eduardo Albuquerque

first time home buyers coupleThe most expensive purchase you'll ever make will be a home. Buying property allows you to build wealth through equity accumulation and tax write-offs. However, the process of buying your first home is often an intimidating one. You may not know what to expect as you meet with your real estate agent, but there are a few tips to keep in mind as you slowly narrow down your property choices.

 

1. Get Pre-Approved

You may have an idea of the type of home that you prefer, but you need to understand your financial limits as you shop too. Ideally, get pre-approved for a home loan at your bank before attending an open house. You'll know how much you can afford as you look at various properties.

 

2. Avoid Major Purchases

Don't apply for a home loan and subsequently finance a brand-new car the next day. Your finances should remain steady until your mortgage is approved. If you spread your finances too thin, home loan lenders might decline your application as a result.

 

3. Ask for an Escrow Account

Lenders will quote you a monthly payment that only include the principal and interest. Ask for an escrow account that's added to your monthly payment. This account is for property tax and insurance costs. When you pay a small amount into the escrow each month, you pay down the expensive biyearly bills you'd receive otherwise.

 

4. Be Aware of Down Payment Requirements

In the past, down payments could be as low as $1,000. In today's financial climate, you'll need about 20 percent of the home's value as a down payment. Discuss your options with your real estate agent. There might be programs that help you afford this down-payment amount.

 

5. Attend Every Home Inspection

Before you purchase any property, it must be inspected by an independent contractor. Be present during these inspections, so that you can participate in the process. If you have a concern about a major household system, you can ease your mind with a professional discussion with the contractor.

 

6. Back Away From a Problematic Property

You're not obligated to purchase or maintain a property until all of the final papers are signed. If an inspection turns up a lot of problems, don't be afraid to back away from the property. There are many other homes that you can tour and purchase.

 

7. Understand That Negotiating is Normal

Your dream home might be too expensive, but you can try negotiating with the seller. Negotiating between parties is normal in the real-estate world. The seller may want a rapid sale so dropping the price a few thousand dollars is worth the money. 

 

If you want to be sure that the papers you're signing are fair and legitimate, you can always consult with a real estate attorney. These real estate professionals can break down the legal terminology and explain every detail of the property purchase. With everything clear in your mind, you can complete your real estate property purchase and reap the benefits in the future.

Need help as a:

I'm interested to:

Buy
Sell
Rent

I work in:

Residential
Commercial
Rental
Reach out to the local professionals for help
 
I agree to receive FREE real estate advice.

Agents, get listed in your area. Sign up Now!

Here's what you'll get:

1. Full zipcodes coverage for the city of your choice for 3 months

2. The ability to reach a wider audience

3. No annual contract and no hidden fees

4. Live customer support/No robo calls

$75 - Any City - 3 Months Coverage
 
I agree to receive FREE real estate advice
I agree with Terms & Conditions and Section 5-5.9.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

Real Estate Agents Near You

Jim  Schlueter professional photo

Jim Schlueter

RE/MAX Trend

1715 Cape Coral Pkwy W Ste 14, Cape Coral 33914

1-678-596-6100

Cities Served

Cape Coral, FL

Lawrence Gillikin professional photo

Lawrence Gillikin

Brookstone Realtors Llc

3310 W. Big Beaver Suite 105, Troy 48084

1-734-634-5238

Cities Served

Onsted, MI

Canton, MI

Sheri  Lipsey professional photo

Sheri Lipsey

Weichert, Realtors Innovations

101 S Lafayette St Ste 12, Starkville 39759

1-662-549-1354
Richard   Matusich professional photo

Richard Matusich

Richard G Matusich Associates Realtors Inc

2940 Union Ave Ste B, San Jose 95214

1-408-489-0700
Hal Blades professional photo

Hal Blades

Coldwell Banker Premier

20184 Coastal Highway, Rehoboth Beach 19971

1-302-670-2218
Yaneli  Garcia professional photo

Yaneli Garcia

Mainstreet Realtors

8577 Haven Ave #100, Rancho Cucamoga 91730

1-909-744-0997

Cities Served

Riverside, CA

Chuck Robinson professional photo

Chuck Robinson

Corcoran Global Living

409 Tennant Station # 429, Morgan Hill 95037

1-408-702-8469

Cities Served

Morgan Hill, CA