First Time Homeowners
With the nationwide economic growth, lower unemployment rates and a strong housing market, 2015 is poised to be the year First Time Homeowners decide to invest in their own home. However the process of buying your first home can be very daunting, particularly if you don’t know what you are doing, and people often find themselves overwhelmed or feeling defeated. In order to lend a helping hand to those considering purchasing a home we have compiled a list of five helpful tips that can assist you on your journey toward finding the best property for your needs, while also staying within your budget.
1. Taking notes will help you keep everything straight
Often during the home search people are looking at many different properties around the same time to find the one they like best. It becomes very easy to forget specific details about the homes and to keep all the different properties straight, making it even harder to eventually narrow down the search. Try taking a note pad with you while house-hunting so that you can write down the pros and cons of the property while it is fresh in your mind. People also find it helpful to make a checklist of specific features they imagine in their ideal home before beginning the search, which helps them evaluate properties based predominantly on their needs and not get distracted. Taking detailed notes while you go will keep you organized, and also make it easier to streamline your search later on.
2. Scope out the block
It is important for buyers to get a feel for the whole neighborhood, not just the property they are interested in, before investing in a home. Come back during various times of the day, and ask yourself does it seem safe? Kid friendly? Do your neighbors seem friendly and respectful? Consider what you are looking for, and evaluate the whole neighborhood in order to see if it meets your specific needs. Don’t be afraid to talk to a person living there so that you can get an honest opinion of what the area is like from someone who already knows. You want to find these things out before you sign the lease, because a bad neighborhood could ruin even the best of properties.
3. Don’t let a bidding war get the best of you
It is not uncommon for buyers to fixate on winning the negotiation, and end up letting their ego stop them from moving into their dream home. Know your finances, but remember to keep things in perspective and try not to lose focus of what the point of the negotiation is. People often get stubborn once they have a set figure in mind, however the difference in price often boils down to very little per month once everything is factored in. Try not to get prideful during a price negotiation, as you could end up locking yourself out of your dream home in order to prove a point.
4. Cut the big spending in order to impress lenders
Try to not purchase any big-ticket items, such as a new car or anything else that would increase your debt in the months leading up to buying a home. This may seem like obvious advice, but people often forget that lenders will be examining their debt-to-income ratio in order to determine the mortgage amount. Holding off on big financial changes, such as moving lots of money around, switching banks, or opening new credit cards, will make lenders more likely to give you a great mortgage rate which will be easier to manage in the long term.
5. Hire professional help
While it may seem like the Internet gives buyers access to all the listing information they could ever need, first time homeowners are far more likely to get the best listing for the best price by hiring a professional agent. Save yourself the time and stress of trying to handle the process on your own, as it ends up being more cost effect to utilize an agent in the long run because they have the knowledge and experience to get you the best price for your dream home. Hiring a professional agent gives you the opportunity to let someone else deal with the fine print, so that you can focus on finding the home that is best for you.
We hope any potential First Time Homeowners found this list helpful, and if you are interested in checking out any of the listings in South Florida then contact a RE/MAX agent today and they would be happy to assist you.