Buying a home in today's market requires some planning and some important steps during the process. As you work with your real estate agent, here are some helpful recommendations for you to use as you start off to find a home to buy.
Save For a Down Payment
As you start to plan for your upcoming purchase, you need to get your credit into shape to help you get a great mortgage, but you should also plan for a down payment. With a down payment, you reduce the amount you need to borrow for your purchase, which can help you save on some costs. First, you can potentially eliminate the cost of extra private mortgage insurance. A private mortgage insurance can be added to your payment each month when you are borrowing more than 80 percent of the home's purchase price, as it provides coverage protection in the event you default on the loan. Then, when you have a down payment, your loan interest is reduced because your mortgage balance is less.
The sooner you can start saving for a down payment and the more you can put down as payment will benefit you in the long run. Then, when you start searching for a home to buy, your down payment will increase the amount of home you can afford to purchase. Your Realtor will help you establish a budget and search price parameters. Talk to your mortgage broker about how much you can pay as a down payment, and they can search for a loan program that fits your financial needs.
Remember a Home Inspection
Once you and your Realtor have found a home that suits your needs and budget perfectly, you can make an offer to purchase the home and begin plans for the final details. As part of your purchase process, make sure you complete the due diligence needed to make sure the home you will buy does not contain any surprises, damage, or expensive repairs. To do this you can hire a professional inspection to be completed on your home.
Your Realtor can recommend a local inspector to complete it and complete a report for their findings. Talk to your Realtor about having your agent present during the inspection and they can provide you details of the findings along with the finalized report for your home inspection. With the details on the home inspection report, you and your Realtor can reevaluate the home's purchase price and negotiate any price changes with the seller.