It can be daunting to buy a house for the first time. It’s important that you make the entire process as easy as possible, from the moment you see the house you want to buy, all the way to the day you get the keys to your new home.
Talk to a lender when you first start looking for a house. You don’t want to spend too much time looking at homes that aren’t within your budget. Your lender can help you determine the best price range for the home.
Next, you need to find a local real estate agent. This should be your first contact. An experienced real estate agent will be familiar with many lenders that can work with all types of borrowers. No matter what your credit history or financial situation is, the right lender will find the best loan program and product for you.
Which loan program is best for you? Ask your lender about an FHA loan or a conventional loan. for veterans and any down-payment assistance programs. Your lender will discuss the best products with you.
Once you have determined what you are eligible for, the lender will give you a pre-approval. This will show you and your agent the maximum amount you can borrow. This will assist you in your home and neighborhood search. Are you looking for a place close to your family, work, the nearest beach, the airport, or near your relatives? The type of neighborhoods or areas you can afford will be determined by your pre-approval number.
You should feel like you are a good match when choosing a real estate agent to partner with. It’s a big deal, as a home purchase is likely to be your largest financial transaction. Refer friends and associates. Check out the reviews on HomeLight and Google. Find out how involved an agent will be when you speak with them. Are they an independent practitioner or part of a trend of real estate agents working in a “team”?
You must get to know, like, and trust the realtor as well as the systems they use in helping you make a decision.
Ask them about their communication methods, whether they attend inspections or if there are inspectors, lenders or other professionals they recommend. For example, Tony Gemmel with Guaranteed rate; Sondra Dane, Supreme Lending; and Donn Rubin with Fairway.
You should feel comfortable listening to their suggestions and understanding the roles they will play.
Next, consider what compromises are possible when you choose your neighborhood and home. It is possible to love a home, but not the exterior or interior paint. You might love a house but wish it had a pool. These are “deal killers”. These additions are possible over time, and shouldn’t hold you hostage to your decision.
If you’re starting a family, but still love a condo with a one-bedroom and one-bath, how will it suit your needs as your child grows up? It will be difficult to sell once you have found the perfect single-family home. A typical loan lasts for around 30 years. This means that a growing family might sell their home before it is fully paid off.
These are the decisions you’ll need to make before you pull the trigger on a house.
Ask your agent for listings of multi-Family units if you are looking for investment properties. FHA loans are available for first-time investors who have never purchased a home. A down payment of 3.5% is required for any FHA loan, regardless of whether it’s a multi-family unit. Your monthly repayments will be lower the lower the rate.
All loans come with fees. Depending on the type of inspection requested, fees for inspections can run from $200 to $400. To determine the property’s value, the bank will request an appraisal. It can cost anywhere from $300 to $400.
Every decision you make is up to you, from the realtor to the lender to where and when to put your money. Contact an agent. Talk to a lender. These professionals can help you find the best-priced property to call your home.
This post was written by Josh Dotoli! Josh is the owner of Josh Dotoli Group which is a laser-focused real estate team at Compass comprised of industry experts selling Fort Lauderdale’s best neighborhoods. This dynamic group is one of the top-selling real estate teams in South Florida with over $94 million in sales in the past 12 months alone. Looking for Fractional ownership vacation homes? The Dotoli group has got you covered.