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First Time Home BuyerFirst Time Home Buyer It can be very daunting as a first-time home buyer entering the real estate property market for the first time, with things like mortgage rates and property appraisals boggling your mind. It is not a good idea to rush into anything uneducated and the more you know, the more power you will have as a first time home buyer. If you have made the decision to move out of home or want to stop renting, it is probably your first time buying a house. Your initial house buying point of call should definitely be the internet with Multiple Listing Services having millions of homes for you to look through. This way you can get a good idea of what you like and don't like and what you want to specify in your own first home search. You will want to have pre-approved finance for a set amount so you know your house buying budget. To seriously search online for your first home using a MLS listing, you have to enter a minimum and maximum amount you are willing to spend. You can play around with this at first, but to narrow your real estate search and find some houses worth looking at in person, you will need a budget. Once you know what you want, your next step is to go and see the bank for preapproval. First time home buyers who have their finances sorted out can then start to evaluate their options as to what they can get in their price range. It would be lovely to look online and find a seven bedroom mansion with an indoor pool and gourmet kitchen for $300K, but it most likely won't happen. You will find that you can buy a first home with more bedrooms that is older or a small townhome that is more modern within a similar price range. Deciding whether to buy a town home or a freestanding home can also be a big decision for a first time home buyer. Townhouses, condominiums and units are cheaper but you do pay for it with less space and common walls. If you have a family or are thinking of starting one, a detached house is probably the better first-time home option. A couple of sound first time home buying tips are: 1. After you have spent time extensively searching on the internet for homes, you should pick some homes you would like to look at in person. Never buy a house without personally visiting the property first, no matter how comprehensive the photos of the home are online. There have been too many horror stories of first-time home buyers doing just that and getting the shock of their life when the actual home turned out a far cry from the description or photos. 2. You then notify the agent and tell them you are a first time homebuyer. They are likely to be more than happy to help you with understanding exactly how the whole home buying process works. They may also be more patient with you as well, because first homebuyers can often be indecisive and take longer to make up their minds. When you find a first home you are certain you want to make an offer on, you should look at it a few times. If you are still sure this is the home you want, let the real estate agent know and discuss your offer. They will take it to the seller and will usually also let them know it is your first time buying a house, which indicates you are on a tight budget. The agent will come back to you with an acceptance, or a counter offer or a refusal. This can go back and forth several times until an amount has been agreed on or the deal has been passed on. If you pass, then begin the searching again for your first home. If an agreement is reached, you move on to the next step of the first time house buying process: You will need to arrange an appraisal and inspection. Your agent should be able to refer someone for you who can do both and it is money well spent. You don't want to move in somewhere to find major flaws in the house or even a problem with termites. As first time homebuyers are more naïve, it is also important to have the appraiser's opinion on the value of the house so you know you aren't being ripped off. If you get the all clear on the inspections, you move to finalizing the mortgage on your first home. Be sure you read your contracts thoroughly so you know everything about your mortgage. If there is anything you are unclear about, keep asking until you understand. This contract is going to tie you in for a long time and some mortgagees can take advantage of first-time home buyers so stay on top of it. When the finance has all been processed, a settlement date will be pre-arranged by the agent. This is the date you get the house keys and the home (with the mortgage) becomes officially yours. You can move in on this day to your first home, and the previous owners must be completely moved out. Up until this date when you sign final contracts and obtain the keys to your first home, the owner can decide to pull out of the sale for any reason, so many first time home buyers hold their breath until it happens. The most important first time home buying information to remember is to be patient, don't rush in and regret it later. Buying a home is a huge decision, and although it is tempting to stop paying rent or get out of your parents home ASAP, the longer you take to make your decision buying a home, the more informed and certain you will be. Buying your first home is a big deal and if there is anything you are unsure of get professional advice before committing to any real estate transaction. |
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