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First Time Buyer Tips
Are you tired of paying rent every month, with nothing to show for
it? Maybe it's time to take the step into the world of real estate
and become a homeowner. This is a big decision, and an exciting one,
but not one to be taken lightly. When deciding if home ownership is
the right step for you, ask yourself if you are ready for the
responsibility - you will be the one required to keep up the
payments, maintenance and repairs. Some of the advantages of owning
your own home means the freedom to decorate or renovate however you
like as well as building equity and a tax advantage.
Sort out your finances before you start looking for a house, so you
know what you can afford. Visit your financial institution or
mortgage companies to compare plans and rates. Less than perfect
credit doesn't automatically mean you'll be turned down. There are
many options available - shop around until you find a mortgage with
terms that will work for you. Make sure you know your limits; don't
forget that you will have monthly tax, utility and insurance
payments on top of your mortgage payments. Once you have a price
range and a plan in mind, get your financing pre-approved so that
you can bid on your dream house with confidence.
Do thorough research. Think about what features are important to you
in your new home: do you want a large yard or are you a busy
individual who would prefer a low maintenance yard? Is garage
parking important to you? What about school zones? Check out
different neighborhoods and consider the amenities in each. What
services are near by? Remember that the neighborhood you buy in will
influence the resale value of your house, should you decide to make
a change in the future.
When you find the right house, you are ready to make an offer. Talk
to your Realtor® about what the house is worth. What is a fair offer
amount? What conditions should be included? Be prepared for the
possibility of another interested buyer making a competing bid. Stay
within the guidelines of your pre-approved dollar figure. Sellers
may choose a higher bid, or they might go for the one with fewer
conditions, which may close more quickly without difficulties.
Once your offer is accepted, you should have a home inspection.
Passing this inspection might be one of the conditions of your
offer. The inspection should reveal any hidden structural problems
such as mold, rot, plumbing or wiring issues. If there are major
problems you may want to lower your offer or walk away from the
sale. Remember, there is no return policy on your house - you need
to be comfortable with this purchase.
Before you can go to close, the mortgage lender will require
homeowners insurance. Get a few quotes - policies can vary by price,
conditions and coverage.
And finally, it's time to go to closing! Once all your conditions
have been met and contingencies have been removed, the final
agreement is finalized and the property deed can be transferred.
Congratulations! You have just completed one of the most important
purchases of your life. Now it's time to move in and enjoy your new
home.
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