Buying a home is likely going to be one of the biggest financial decisions that you ever make. While purchasing a home may seem like a straightforward process, it can be more challenging than you expect especially if it's your first time buying. There's more to consider than just finding a home that suits your needs and that's in a desirable area. If you are purchasing for the first time, here are three things that you should do in order to ensure that you are finding the right home for your needs.
Hire a Real Estate Agent
When buying a home, you may feel like you don't need a buyer's agent. However, when purchasing your first home, a real estate agent from a place like Jamie Stewart RE/MAX Crest Realty can be invaluable. They can help you find homes within your budget that are in your desired area and that have the features you are looking for. Real estate agents know the local market well and can show you homes that you may not even know are for sale. Buyer's agents typically get paid via commission. On average this commission is between 2 and 3 percent of the sale price of the home.
If you are buying your first home, getting pre-approved for a mortgage can be incredibly useful. The pre-approval process typically takes one to three days and will give you a good idea of exactly what you are able to afford. Getting pre-approved is also attractive to sellers and can increase the chances that your offer will be accepted. Shopping around with different lenders during this time can also be beneficial. Shopping around will ensure that you get the best possible interest rates, something that can save you thousands of dollars over the course of your loan.
Don't Skip the Inspection
Finding a home that suits your needs and that's in your price range can be exciting. It can also be tempting to skip the inspection during the buying process. However, skipping the inspection can be a major mistake. Home inspections can catch potentially expensive problems early on before the purchase is final. Depending on the issues an inspection finds, you may find that you need to walk away from the purchase. The average home inspection costs between $278 and $390.
If you are a first time home buyer, there are a few things that you should do. First, hiring a real estate agent to help you find a home can be very beneficial. Getting pre-approved for a mortgage is also a good idea if you are buying a home for the first time. While it may be tempting to skip the inspection when you find a home that you like, this can be a major mistake for first time home buyers.