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What First Time Home Buyers Need to Know

For those buying a home for the first time, there’s nothing more exciting than finally getting started. However, before you rush in, there are a few things that you need to be familiar with to avoid buyer’s remorse. In this blog post, we’ve made a list of the top 5 things first-time homebuyers need to know, in no particular order. 

Start with Education

Have you taken the time to read up on the latest housing trends as well as how home-buying works? There is a lot of research to be done if you want to get the best possible rates available in a particular neighborhood. Moreover, there are plenty of loans for you to choose from, many of which can help to buy your first property. Here are just a few: 

  • VA (veteran) loan
  • USDA Rural Development loan 
  • FHA loan 
  • Conventional loan
  • Renovation loan 

You Need to Be Pre-Approved 

Knowing your finances and getting pre-approved will let you narrow down your choices when house hunting. This will also help you stand in a stronger position when you’re finally bargaining for a house you want. Being pre-approved means that your finances have been evaluated and lenders know what you can afford for your mortgage. Moreover, a good credit score can make you eligible for better interest rates, thus helping you save more on your first home. 

Work on Your Credit Score 

If you aren’t having much luck with the suggestion above, try improving your credit score. A lot of the time, the better your FICO scores are, the better interest rate you’ll be offered for a loan. Chances are, your credit scores aren’t the greatest, so be sure to become mortgage-ready using these simple steps: 

  1. Always pay your bills on time 
  2. Ensure that your credit lines are below 30% of the maximum amount 
  3. Keep on track of your credit history 

Always Speak With a Realtor 

Remember that no one knows real estate better than a Realtor, and they can help you through this complex process. Having an experienced professional by your side can provide you with many benefits. For starters, they’ll know about pricing, details of the neighborhoods you’re interested in, as well as all the latest news about the market itself. If you’re hesitant about speaking with a realtor because of fees, know that these are mostly paid by the seller. 

Save Your Money

We all know that buying a home will cost us money — even if your home loan provides 100% financing, you will still need to be prepared for miscellaneous fees and costs. This could include paying an inspection fee or funding an escrow account. Even if you purchase a second-hand home, you might find that there are repairs that need to be done, such as leaks, old appliances, or window replacements. 

Start Looking for Your Home Today 

Being a first-time homebuyer can be a completely overwhelming experience. However, educating yourself and knowing what to expect out of the whole process is the first step towards being a responsible homeowner. Furthermore, you don’t have to do everything on your own — a knowledgeable and experienced realtor can help address your questions and concerns and make the process smoother. 

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