Buying your first home? Some Specifics That You Should Know !!

Paying rent month after month can be very exhausting business. So one fine day, you wake up with the desire to own your home to get relieved from the whole rent house business. Despite the strong need, umpteen thoughts run in your mind before you take the big leap.

After all, the thousands of questions that pop up in your mind are only too natural if is your first time in home investment. You might fear not to mess up and for everything to proceed the right way. We assure you, it is completely normal to feel that way! You are probably making the most important financial investment of your life and spending too much from your pocket to make a hurry burry decision.

When you feel informed about the whole home buying process, your confidence and sense of what you want and whom you should approach to get it all done, will obviously shoot up. Lucky for you, you are in right hands. Let's get started to help you buy your first home!

Are You Cut For Buying Your Own Home? 

Generally, before making a home investment, people go through a phase as there are lots of important decisions to be made. Anxiety and fear might tow you for quite some time. That is why it is important to analyze and rationalize  the whole act before taking any quick decision. Owning a home, can be easy for one, a struggle for some and a totally impossible feat for others. It is sensible to think it all out and see where you stand before you have already made the big leap and find yourself in a fix.

• Renting vs. Buying: Sometimes, you might feel that renting is a better option compared to buying a house, as it has its setbacks.
• Prospects Of Buying: While there may be a few drawbacks in making a home investment, it is not without its benefits. It is important that you realize and acknowledge its good side when you make the decision to move forward with the plan and keep in mind the same when you come cross  gray areas in the process of buying a home.

Fine Tune Your Financial Planning 

Sit and work out the budget and the resources in hand. Set aside a down payment and view all the loan programs that are available for the purpose. When you have all the figures in hand, you will get a clear picture on how much you can afford and what it will cost to make the investment.

• Get A Free Credit Report: It is important that your credit is free of any debts. If you do have unpaid loan balances, try to get it all cleared before going for home buying.
• Find A Lender: Begin with your own financial institution and then later check on mortgage brokers who are willing to lend you loan at reasonable interests. Compare the prices and opt for the plan that not only best suits your requirements but one you understand well as well.
• Fix Your down Payment: The higher your down payment, the lower your mortgage will be. To avoid being taxed with heavy interests, maximize your down payment as much as possible.
• Consider FHA Loans: It's worth considering this option, as it has reasonable down payment requirements and lets the sellers to pay either part or even all of your costs.
• Acquire A Pre-approval Letter: When you approach the seller with a pre-approval letter for loan purposes, you have better chances during negotiation.

Choose A Real Estate Agent To Assist You Home Buying 

You might think why you even need a real estate agent when everything is accessible online itself. One local market varies from the other in more ways than one and  a good agent will be able to guide you in making the right decision with his knowledge and expertise.

• Why Hire an Agent? An agent who has been in the field for quite some time would have gathered vast knowledge about real estate. He or she will be in a better position to help you avoid making mistakes such as choosing the wrong property or paying more than its worth.
• Find a Real Estate Agent: Take the help of your friends and relatives in this process. A referral is always a good choice, as they are being recommended by someone who is satisfied with their work. But, before starting to work with that person, make sure that you are comfortable with the suggested person too.
• Play By The Rules With Your Agent: It doesn't mean that you should follow the commands of your agent. After all, he is there to cater to your requirements. But there are certain protocols that you should follow and make sure that you do not say the wrong things in your desperation to get a good home soon.

Prevent Committing Home Buying Mistakes 

As always, the best way  to learn this is by getting an insight from the mistakes made by others. The best defense that you can charm to be on the safer side is by buying a home in the most desirable location.

• Tips For First-Time Home Buyers : Begin with online property hunt and do not go for print because, most of the reputed ones won't be advertised in newspaper
• Take A Look At The Homes For Sale: You should take a good look at the houses that are put for sale in person and ask your real estate agent to do the same before showing the property to you. Also, make a tour only when the parameters suit your requirements.
• Draft A Safe Contract: If you want to protect and safeguard your hard earned money, then you should never make the blunder of writing contingencies into your crucial contract.

Negotiate Like A Pro 

Who said you cannot negotiate when it comes to home buying? Home buying may not be like car buying, but it is never wrong to try your luck by negotiating to strike a deal with a good price.

• Negotiating Tips: There are many factors to consider in home buying. Price is always not the major criterion. So, when you see a good property that suits your every requirement but is slightly more than your planned budget, then quote your offer. If the sellers are unwilling to budge to your offer, then think in terms of the value that is attached to the property. If you think that you can manage their quotation and feel that the property is worth the take, then go for it.
• Facing Multiple Offers: It is a common scenario to be faced with multiple offers. But take a cautious step and analyze every offer before finalizing one. Make sure that they satisfy you completely and add good value to your investment.

Never Fail To Do a Home Inspection And Read Disclosures 

Home inspection is a very vital procedure you need to follow before making a purchase. The disclosures that you receive should be governed by the law, which differs from state to state.

• What is Home Inspection? It is a legal procedure carried out by authorities  to make sure that the house is in good condition from foundation to roof. A word of go from authorized personals will add a sense a security and value to your investment.
• Material Facts: Sellers often do not notify buyers on the defects in the property. It is in your hands to make sure that you are not kept in the dark.
• Conduct A Final Walk-Through: Before closing the property, do a final walk-through to check whether it is in the same state as it was when you agreed to buy it.

Final Step In Closing Your Home 

Usually, 30 to 60 days after accepting your offer, transactions will be closed. Do not forget to book the transportation to move your things earlier, as many people tend to make a move at the end of the month.

• Home Insurance:  Look for the insurance policies that offer you the best rates and choose wisely. Usually, the firm insuring your automobiles will close the best deal for your home as well.
• Title Insurance Policy: Individuals often overlook taking a title policy. On the other hand, this mode of policy is the cheapest form of policy available and you also get to make a premium payment only once.