What would you recommend as the best first step in home buying?
Before you start looking at homes for sale, be sure you do some “homework.” Here are some of the questions for which you’ll need answers:
Check out interest rates
What are current local mortgage interest rates for 15-year and 30-year fixed rate mortgages, and for 1- 3- and 5-year adjustable rate mortgages?
Shop for the best loan
Which type of loan is best for you? Will you be in the house several years and benefit most from a long-term fixed rate, or do you want a lower, short-term rate because you plan to move soon or expect your income to increase rapidly over the next few years?
Determine how much house you can afford
How much of a mortgage can you qualify for? The loan amount plus your down payment tells you how much house you can afford.
Investigate neighborhood prices
What neighborhoods feature homes in your price range?
Separate needs from wants
What are your priorities for your next home? How important are public transportation, community facilities, on-street parking, lot size, privacy? How many bedrooms and baths will you need? Will you need a space for a home office? How important are quality neighborhood schools?
What is the single most important rule in house hunting?
Want to know what the number one rule is when home shopping? Well, many details must be considered in choosing your next home – style, size, price, location. It’s probably impossible to say which factor is most important. But one thing is certain – if you will be moving again in a few years, be sure you buy with selling in mind. Chances are, the items that make your new home a comfortable fit for you will also attract buyers later on.
Are there any inside tips on down payments for first-time buyers?
Folks who are new to the home-shopping world need more than just good luck. You should, of course, save all you can for closing costs and a down payment. For further help:
Revisit your “wish list”
Reconsider what you’re looking for in a first home. Find out what you can afford now, and consider buying a starter home that requires a small down payment with the idea of moving up in a few years.
Take advantage of special programs
Look into special low- and no-down payment programs like loans guaranteed by the Department of Veterans Affairs (VA) and Federal Housing Administration (FHA). Some areas also have local programs for low- and moderate-income families or first-time buyers, offering lower interest rates or down payments.
Gather gifts
Check with parents and relatives for monetary gifts that can go toward a down payment or closing costs. A 20% down payment can dramatically cut monthly costs and eliminate monthly mortgage insurance premiums.
Consider “sweat equity”
If you can fix up a home that’s in poor condition, you increase the value of your investment faster. Ask us about special combination loans that provide fix-up funds as well as purchase money.
Scour market for bargains
What are some questions I should ask a prospective buyers agent? So, you’re thinking about buying a new home! The first place to start is by looking for a professional buyers agent to help you. An experienced buyers agent will “bind” together the entire process. The right pro will help you find the right property and keep things on track from shopping to closing.
Here are some key questions to ask the buyers agent you are interviewing:
- Do you represent the buyer or the seller?
- What are your fees and who pays them?
- How much time will you have to help me look for a new home? - - - - What tasks will you perform for me as my representative?
- How often will you communicate with me as my buyers agent, and how can I reach you?
- Will you refer me to some buyers you have represented recently?
- Do you have access to the area multiple listing service, foreclosed listings and other sources of information about available houses?
- Will you show me all the available houses in my price range, even if they are listed by another company?
- Will you give me a comparative price analysis for any homes I am considering?
- Do you represent the buyer or the seller?
- What are your fees and who pays them?
- How much time will you have to help me look for a new home? - - - - What tasks will you perform for me as my representative?
- How often will you communicate with me, and how can I reach you?
- Will you refer me to some buyers you have represented recently?
- Do you have access to the area multiple listing service, foreclosed listings and other sources of information about available houses?
- Will you show me all the available houses in my price range, even if they are listed by another company?
- Will you give me a comparative price analysis for any homes I am considering?
