Buying a home can be stressful, especially if you are a first time home buyer because it is the most important investments you can make in your life. The process is considered very long, complicated and confusing. But don’t worry, here we are giving you some tips which can help you to buy your dream house.
1) How Much Can You Spend On Your House
Before you start looking for houses to buy in Abbotsford, find out how much money you can afford to spend on your home. Determine what you can afford on a monthly basis, and see homes within your price range that fit your finances, so you don’t get frustrated.
2) Check Your Credit
When you are applying for a home loan, your credit will be one of the key factors in receiving your approval because it helps the bank determine your interest rate and, in many cases, the terms of the loan as well.
3) Hire The Right Agent For You
Real estate agents are invaluable in providing information about homes and neighborhoods, but working with the wrong agent could cause you a lot of problems. So hire a real estate agent who specializes in the neighborhood you like. The agent can offer you valuable information about the neighborhood, such as schools, parks, grocery stores, and more. Moreover, Select the agent who really cares about you and wants the best for you.
4) Don’t Go Home Hunting Without Being Pre-approved By A Lender
Your lender will verify your credit making sure that it is in order, after calculating your income he will tell you the total amount for which you can buy a house, but most importantly, he will give you a letter that endorses your position of pre-approved for a loan which sellers require before accepting an offer. Check here with one of our certified lenders who offer our first-time home buying programs.
5) Prepared Necessary Documents
As a first-time home buyer, you may need a little extra time to gather the documents you’ll need – you need to show the lender your tax returns, pay stubs, and financial statements, so make sure you have those documents prepared. Check your credit report to make sure there is nothing unexpected in your financial profile.
6) Pre-Qualification or Pre-Approval
When lenders pre-qualify or pre-approve you for a mortgage, they provide you with an estimate of how much they could loan you. It is important to note that being prequalified does not guarantee a loan, but it does help through the process.
Pre-approval is a conditional loan approval in which an approver assesses your credit and ability to pay, based on your information in required credit and income documents. Generally, pre-approval depends on your not changing the information you initially provided about your financial situation and choosing a property that meets the guidelines set by the lender. Make sure the pre-approval is issued by a mortgage approver who has evaluated your ability to repay the loan.
7) Stay Under Your Pre-approval Limit
As you go to view houses, try to select those properties whose list price stays below the amount for which you were pre-approved. Although you can technically afford a higher amount, remember that this is your limit, and if you have an unexpected expense in the future, the ideal is that you can handle it without suffering financially.
8) Reserve Money For After The Move
Once you’ve saved for payment and budgeted for closing costs, it’s also a good idea to set aside a little money to pay for your furniture, fridge, rugs, accessories, paint, and any other touches you want to give your home when you move in.
9) Choose The Right Area For You
Finding the right area is just as important as finding the right house. Look at local crime and safety statistics. How close is the nearest hospital, pharmacy, supermarket and other services that you will use? Also, drive through the area that interests you before going to look for a house in it.
Drive through the area multiple times and at different times of the day so you can analyze traffic, noise, and activity levels.
10) Understand The Need Of Home Inspection
This part of the process is especially important if you are buying an existing home (rather than building a new one, which could include a builder’s warranty). If your home needs major repairs that you can’t see with the naked eye, the inspection will help you negotiate the repairs with the current homeowner, or adjust the price accordingly.
11) Compare The Different Homeowners Insurance
Before closing on your new home, the bank will require you to purchase homeowners insurance. Compare rates and coverage to find the best price.
Implement these tips to buy a house for the first time.