By Suzie Wilson, guest contributor
The home-buying process can be simultaneously nerve-wracking and exciting. Since the purchase is likely your largest investment to this point, you’re rightfully concerned about doing things correctly to avoid costly mistakes or regrets. Discover tips that help you make your first home purchase successful and an experience you look back on fondly.
House Hunting
Though home shopping can be the most fun part of your process, the search can become overwhelming as you consider and compare multiple properties and try to settle on the best choice. As a first-time buyer, you’re likely looking for a starter home that can springboard you into a long-term dwelling later. Consider finding a better bargain by viewing homes that are for sale as is. You can get a deep discount and renovate a house to its full potential over time, making the purchase a profitable investment. Just make sure you count all the costs with an inspection to know what a remodel will involve. Check land records for red flags on property disputes and consult a real estate attorney before signing on the dotted line.
As a substantial investment, consider education on real estate investment to make intelligent decisions. Experienced home flippers can explain valuable tips for selecting a property or guide you to a deal that fits your needs and budget. Work with an experienced real estate agent to speed up your search and receive additional guidance.
Insuring the Home
Every home suffers wear and tear, and you should minimize costs for replacing and upgrading faulty systems. Homeowners insurance is a requirement that protects you from structural damage, theft, and injuries that occur on your land. The coverage does not help if an appliance fails or a home system malfunctions. For example, reports show that rewiring a house costs thousands of dollars for a modest home. For those concerns, investigate home warranties for annual renewable protection against such issues. Read reviews to find the best home warranty options and a policy that fits your budget and can give you peace of mind if your HVAC, electrical, plumbing, or appliances need repair or replacement.
Locating a Lender
Your current bank may not be the best option for your mortgage. As you go through your home search, pre-qualify for loans from different companies to get a rough idea of what you can afford. Save and compare pre-qualification letters from various institutions to determine who offers the best deals. Pay note to first-time home buyer programs that offer down payment assistance in addition to government grants and credits.
Once you’re ready to make offers, ask for pre-approval, which is an official request for a loan and requires verification of income and a hard credit inquiry. You can still make multiple requests since credit pulls for the same type of loan over 30 days count as one credit check in your report. Bring your pre-approval letters for making offers to show buyers that you’re serious, which can strengthen your negotiating position.
Preparing for the Move
Don’t be so wrapped up in the home-buying process that you forget to prepare for getting into the new house. The assistance of a moving service can safeguard your precious time and be more efficient than doing it all alone. Also, consider cleaning services to get your rental in tip-top shape so you can receive your full deposit.
Buying a home naturally includes some stress but can be pleasant and rewarding with the right preparation. Create a good plan for finding a home and settling in so you can enjoy relocating.