Acquiring a home for the first time can be one of the most important and exciting decisions anyone can make. Mistakes in the process can be disastrous, but are oftentimes avoidable with a bit of research and some help from a real estate professional. To help guide first-time buyers, here are a few dos and don’ts to consider.
DON’T presume that just because you’ve saved enough for a downpayment that your are able to buy a home. You should anticipate other pre-purchase expenses related to buying a home. When you anticipate these costs and investing beforehand, it makes the loan process run more smoothly. Check your credit score as well, as this will determine your interest rates and insurance costs.
DON’T make any large purchases before closing the deal. Lenders usually conduct re-checks on your debt load prior to closing. If they notice significant additions to that load, the chances are they might hold back on you. Postpone getting the new furniture, appliances or a new car until you’ve closed.
DON’T think too little of the cost of home improvements. If you decide to buy a home that needs fixing up, always assume that any updates on it will cost more and take more time than you predicted.
DON’T make a sentimental purchase. You will definitely want to find a home that you love, but don’t let attachments to details blur your vision when making smart financial investments.
DO have a long term outlook on your investment. Considerations like the kind of neighborhood or the conditions of local schools may not be significant factors to you especially if you don’t have a family. Even extra bedrooms may seem unimportant today, but the potentiality to resell your home is. Think about how your home may work for you if your current circumstances change, or how easily you may be able to resell it when necessary.
DO work with the right lender. Choose one with a good name on the market and who delivers on their promises.
DO work with a real estate professional. There are many complex roads to navigate in purchasing a home, and the right realtor will be able to provide you the guidance and resources to manage things well. From finding the right home, to negotiating the deal, to taking you through all the possible costs at closing, a real estate professional will be your most important asset to your investment. Take the time to find the right person. Ask for recommendations and meet with a few agents. Find one who is willing to work his schedule around yours and with a personality that you can connect with so the process turns out to be fun and as smooth as possible.
Ellen’s Realty has been helping real estate investors get the most out of their investments for over 30 years. Their pool of seasoned specialists are the most professional and efficient real estate partners you’ll ever want to work with. Call Ellen’s Realty for all your property needs today.