2 Tips To Help You Prepare For Buying Your First Home

Posted on: 2 August 2017

When you are shopping for a new home, there is a lot that goes into the process from beginning your search until you close escrow on your new home. Having the right professional help during the process can make it run more smoothly. Here are some tips to help give you the right assistance during the process of buying your first home.

Determine What You Can Afford

Your loan payment on your new future home can often be one of the largest expenses you will ever pay on. And depending on the area and real estate market you live in, your mortgage payment may be more than what you have been paying in rent. For this reason, it is important to fully analyze your finances before buying a home.

Keep in mind your new mortgage payment will not include just your loan payment. It will include the mortgage payment's principle and interest amount, and will also usually include an extra amount to pay your home's owner's insurance and the county property taxes. This extra amount is placed into an escrow account and is paid out to your home owner's insurance company when your insurance premiums come due and is paid to the city when the property taxes are due.

Make sure you have the ability to meet your full mortgage payment each month with enough left over for your other bills, including food, gas for your vehicles, and personal expenses. You don't want to get into your dream home only to discover you can't meet your other financial obligations and other living expenses. Your mortgage broker who will find an appropriate loan for your home purchase can help you determine how much you can afford.

Hire a Real Estate Professional

A real estate professional who knows your area and market, and has knowledge about negotiating real estate transactions can be invaluable to you during this process. Your real estate agent will have access to all the homes listed for sale in your area so they can search for specific homes you are looking for that match your future home's requirements.

Your realtor will also be able to prepare a comparable report for any home you are interested in purchasing to help you avoid over paying for the home you wish to buy. Then, as you write up the purchase offer, your agent will help you complete it properly to cover any requirements you need for the purchase of your new home. Your real estate agent will help you up to and during the closing process to make sure the entire process flows smoothly.

Use these two tips to help you buy your new home.

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