Every individual harbors a dream of owning a home. You see, nobody enjoys dealing with annoying landlords and caretakers. Buying your first home will probably be one of the biggest financial investments you will ever make. Most first-time homeowners tend to make decisions based on their emotions when it comes to which type of house to buy. Even though this is right, never overlook the other important aspects.
Most first-time home buyers, don’t have any clue about the buying process. Don’t blame yourself, coz you’re not alone. These are some of the lessons that are not taught in school. We were told that experience is the best teacher, and this is where your experience is needed most. But worry not, I got your back.
Having enough money is not enough reason to own a home. There is a myriad of other reasons to be considered. Some of these factors are;
If your answer to all these questions is in the positive, then you are truly ready to own a home.
You need a mortgage pre-approval before owning your dream home. Take time and shop for the best mortgage lenders for first-time buyers. Remember that all lenders will offer you a loan based on your credit score. A credit score is a number that shows the likelihood of you paying back a loan. Work on your credit score before applying for a mortgage.
There are different loan types and loan payment options available in different banks and lenders out there. The questions that most potential first-time homebuyers ask are related to the type of mortgage loans available and the pros and cons of each.
You can seek the services of a professional mortgage broker who will look at the rates of different companies and choose the best first-time buyer mortgages for you for a fee.
As a borrower, you need to decide whether you want a fixed-rate mortgage loan or an adjustable-rate mortgage loan.
Fixed-rate mortgage loans have the same interest rate for the whole period of repayment. The size of your monthly payment will remain the same.
Adjustable-rate mortgage loans have an interest rate that will change from time to time depending on your agreement with the lender.
It’s important to note that a fixed-rate mortgage may always change because property taxes and insurance are always fluctuating.
There are several pros and cons to both fixed-rate mortgage loans and adjustable-rate mortgage loans. Ensure you understand all of them before committing.
Most lenders often have special offers for first-time homeowners’ loans. Be on the lookout for such offers.
Only after you have been guaranteed a mortgage should you start looking for a house. This is the gist of the whole home buying process, do it wrong and you may regret the whole of your life.
Seek the services of a professional realtor who will carefully listen to your needs; the cost of the house, location, etc. and advice you accordingly about the current trends in real estate. A good realtor should offer you several different house options.
After getting a list of potential homes from the realtor, then ask for a home inspection. Here, it’s advisable to hire the services of an independent inspector who will point out issues like termites, poor roof, poor plumbing that may become an issue after purchasing it. You see no one wants to incur extra cost after buying their first home.
You have now identified a house and think you can make it your dream home. Then go for it, buddy. The next step is to make an offer to the buyer. Here you write a letter stating a list of expectations that you need to be addressed before committing to pay a stated amount.
After the offer is made, the seller decides if they want to accept it or make them make a counteroffer for the buyer.
A time will come when the seller will agree to sell the house subject to both parties meeting certain terms. And congratulation, your dream of owning a first home is almost becoming a reality.
This is the period between when the offer is accepted and the closing period. The closing period is the time when you purchase your dream property. The Escrow period is the time when all details are finalized. It may be very long or short depending on certain factors. A first home buyer should be very patient during this period.
These are some of the things that should be done during the Escrow period;
Once everything is in place, date of sale will be set. This is what is referred to as the closing period.
CONGRATULATIONS! You are now a first-time homeowner.
They say we learn by making a mistake, but my principle is that you should always learn from other people’s mistakes. Having said that, here are some of the mistakes that may kill the dream of owning your first home.