5 Basic Things You Should Know About Buying a Home
Post By homes4sale in Chicago Home BuyingPurchasing a home for the first time is a big deal for most and can be a bit overwhelming, as well. Of course, the best advice anyone can give is: get the help of a professional real estate agent, who you are comfortable with, to assist you. The home buying process is complicated, with many legalities and steps along the way that can make it near impossible for someone to handle on their own!
So, in addition to hiring a Realtor, here is a list of five very basic, but very important things you should be aware of when looking to buy a home in
1.) Plan to stay in the home you buy for three to five years minimum. This is typically the shortest amount of time you need to recoup purchase/moving expenses. Otherwise you may end up loosing money on the deal! Especially when the housing market is slow, you should plan to remain in your property for the long term.
2.) Location, location, location. This is the one factor that allows a property to always hold its value. The better the location, the more the home is worth because you can always remodel a house to be whatever you want, but you can never change where it is. So scout out
3.) Review your credit score well in advance of applying for home loans. This is important because your mortgage rate is based on your credit score. So get a copy and go over it with a fine-tooth comb for errors or discrepancies. And, if your score is on the low side (under 650), you should try raise it before meeting with lenders.
4.) Get a preapproval letter from your lender. This helps you determine what a realistic purchase price is for your individual financial situation and shows sellers that you are serious about buying a home.
5.) It is great if you can put 20% down on a home purchase, but you can still buy property if you don’t have that much saved up. There are all kinds of government, public and private lending groups that offer loans with much lower down payment requirements. Depending on your credit score and qualifications, you may be able to find financing for up to 97% of the sale price.