Buying Your First Home? Follow These Tips for Success
Posted on: 15 December 2016
Buying a home for the first time can seem very overwhelming when you realize all the factors that you need to consider. Not only are you trying to find a home you like, but you're also competing with other buyers that could potentially want the same home as you do. To make sure you are prepared for the whole ordeal, follow these three tips before making an offer on a home for sale.
Check Your Credit History
When is the last time you had your credit checked? If it has not been any time recently, you may be in for a surprise. That is because your credit will be checked when it comes time to secure financing for the home, and you do not want to run into any surprises that could prevent you from buying a home that you like.
Get your credit report pulled and analyze it as if you were a mortgage lender. Do you see many debts that have not been paid off? Have you not had a very long credit history with any major bank? Do you already have a big existing loan for your car? All of these factors can play into how much money a mortgage lender is willing to give you, or if they are able to lend you money at all.
Make sure you correct anything on your credit report that is incorrect, pay off those debts, and make it look as good as possible before you go in for a loan.
Prioritize Your Wants and Needs
Chances are that you will need to make some compromises when it comes to finally picking a home that you want to buy. It's a good idea to prioritize your wants and needs, and be prepared to settle for a home that might not have everything that you want. Your first home will most likely not be the home you stay in your entire life, and you don't want to go over budget because you needed the home to have everything.
Do a Comparative Market Analysis Before Making Your Offer
Have your agent do a comparative market analysis before you make a formal offer. This means finding similar homes in the area that have recently sold, and comparing their prices to the asking price of the home you want. It can give you a great idea of a home is too expensive or being priced to sell quickly.
Your agent can provide you with more assistance when buying a home for the first time.
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