Buying a house for the first time can churn up all kinds of emotions. From exhilarating to nerve-racking, it’s an experience that you will need to be prepared for. We’ve put together some advice for first time home buyers to make your purchase run as smoothly as possible.
An important step is to go see a lender. It’s easy to miss this step when you’re wrapped up in the excitement and anticipation of your first home, but meeting with a lender, or multiple lenders, to find the best financing option for you is vital to the process. (If you don’t know where to start, we have a list of reliable lender contacts)
Having a lender allows first-time homebuyers to have good negotiating power right from the start. Your lender can go over your credit history and provide you with helpful advice on how to handle any issues that may hold you back from purchasing. If your credit is good, lenders will pre-approve you for a home you can afford. This gives you the advantage of knowing just what your price range truly is and will help manage your expectations. A lender can tell you exactly how much you’ll have to put up for down payments and closing costs which allows you to present the best possible firm offer for a home you like. This is very attractive to sellers, especially in our current market.
Once you’re pre-approved, you will know the following:
- The maximum price you can afford. This will allow you to make a firm offer as well as move quickly on a house that may get other bids.
- How much money you need for down payment and closing costs.
- How much the seller will need to help with closing costs, if necessary. Discussing closing costs from the beginning can ensure you don’t lose the home during negotiations.
- If you have any credit issues and how you can resolve them.
- If you have been pre-approved for the loan. This is very attractive to sellers.
- That your paperwork has been submitted and processed. Therefore, you will not have lengthy waits for the bank to evaluate your credit, etc. when you’re ready to make an offer on a house.
- How long it will take for final approval of your loan.
You now know what you can afford, what you can offer, and what you need to negotiate from the seller. As a first-time homebuyer, you’ll have the facts and be ready to purchase your home.
Now comes the fun part, shopping for your dream home!
We’re here to help first-time homebuyers. Contact our team today and we’ll walk you through each step of the process. We look forward to introducing you to your first home!