The Newbies Guide to Purchasing a Home


Buying a home can be thrilling and overwhelming. If you are a first-time homebuyer, those emotions can be even more extreme. It can be difficult to know exactly what to expect and the learning curve can be steep, but most of the issues can be resolved by doing a little homework.
  • Check your credit - Your score is among the most important factors when it comes to qualifying for a home mortgage. You are able to obtain a free credit report every year. Take some time to review it for mistakes and be prepared to explain any unpaid debts or collection actions. Additionally, it is important to remember, that payments are not the only thing that plays into your credit score. The amount of credit you're using compared to your available credit can also be crucial in your score. Repairing damaged can take time. Begin the repair process at least six months before shopping for a home.
  • Space versus location – When you are a first time buyer, choosing the right home is often about compromise. If you want a prime location, you might need to give up some of your must-haves including extra space. 
  • Plan for the future – Many times, new homebuyers are so focused on the here and now that they forget to plan for the future. Consider if you will be starting a family soon and other plans that may come into play when planning your home purchase.
  • Inspections – A home inspection is a crucial step in purchasing a home. It will tell you if there are any things you may not see on the surface that could be cause for alarm. Don’t get so wrapped up in the idea of a new home that you skip this important step. Additionally, if the inspector finds something negative in his report, it may not be a deal breaker. Use it as a negotiation tool.
  • Stick to your price point – Many first time home buyers have a long list of things they are looking for in their first house. It is important to remember that purchasing at a lower price point and putting some work into your home might be a better way to get the house you were hoping for.

Are you considering purchasing your first home in Joliet or the surrounding communities?  Contact Nancy Hibler to guide you through the home buying process.

Comments

Post a Comment

Popular posts from this blog

How Your Credit Score Affects Buying a House

Image
You’re ready to purchase a home - but have you looked at your credit score lately? Your credit score as a home buyer is not only one of the most important variables when applying for a mortgage, it is also the first thing a mortgage lender will check to see if you qualify for a loan. Your credit score affects how much you can borrow, the kinds of mortgages for which you can be approved, and your mortgage rate. The minimum acceptable credit score depends on the type of home loan you qualify for, but conventional financing for buying a home usually requires a minimum credit score of 620.  Pricing Based on Risk Mortgage lending is based primarily on risk-based pricing. Lenders increase the cost of your mortgage for each risk associated with your credit profile. The lower your credit score, the higher the rate you will pay for a mortgage. For example, the difference between a 750 credit score and a 625 score can add one half of a percent to your loan rate. On a $200,000 30-year mo
Read more

So Your Property Won’t Sell: Next Steps

Image
When you’re trying to sell a home that hasn’t had any offers or there hasn’t been any movement, it can be a stressful situation. The pressure can feel desperate, particularly if you have already purchased another house or are currently living out of state. If you have not yet found a buyer, it is important to take a step back and access exactly why your house isn’t selling.  Consider the market. Does the current market favor buyers or sellers? Talk to your agent to about the median number of days on the market in your neighborhood for comparable homes.  Adjust your expectations. You might think your house is a great deal but now is the time to look objectively at your house situation. How does your house stand up to the comparables in the area? It is crucial that, as a homeowner, you are honest in your assessment. Sometimes vanity or pride can end up costing you money.  Rethink the price. Beyond the housing market temperature, the most likely reason for the lack of offe
Read more

Do I need a REALTOR®?

Image
In the modern world, it seems like you can do anything online. But what about buying or selling a home? While it may be possible, there are many benefits to using a REALTOR® to navigate the turbulent housing market. While you might have good intentions, using your own resources to buy or sell a home could end up costing you a lot of time and money and unneeded stress. Here are a few benefits to hiring a realtor:   Expertise - Your REALTOR ® is a licensed expert. Buying or selling a home is complicated. There are a lot of forms, disclosures and legal documents that are involved and need meticulous attention to detail. In addition, real estate has its own complicated language and jargon that can be confusing if you are not well versed on the terminology. REALTORS ® have valuable education and field experience that will get you the best deal possible and give you peace of mind. Local Knowledge -   Every region is different so it’s important to have someone who knows the ins-
Read more