First Time Home Buyers: How to Start Your Home Purchase
12/20/2010
If you’re a first time home buyer and you’re planning a home purchase, congratulations. You’ve chosen to take a significant step toward financial success. But you may be unsure about where to begin. Read on to find out how to kick start the home purchase process.
1. Research. If you’ve never bought a home before, you may not know all the details of how a real estate transaction works and what you’ll need to do to succeed as a homeowner. The internet is a valuable educational tool, and you can get more information than you’ll need for free. Start there. Sites like this one can provide great industry insight and put you in touch with real estate and mortgage professionals.
2. Compare your options. Contact several mortgage professionals, as many as you have time for, and compare what they offer. Compare mortgage rates, loan terms, and closing costs. Are you considering an FHA mortgage? A VA mortgage? You’ll have to take this into account. Yes, do all this before you even start looking for a home.
3. Get preapproved for a mortgage. Once you’ve decided on a lender, fill out any necessary paperwork to get preapproved for a mortgage. You’ll want to do this before you start seriously house hunting.
4. Find your dream home. This is the fun part. Work with a real estate professional who knows the details of the local area. If you can’t afford your dream home, find a home that meets your financial and familial needs. Make sure it’s a home you love. You’re about to invest a lot of time and money into it.
5. Negotiate with the seller. You’ve prepared yourself thoroughly for this step of the process, so this part should be easy. Once you’ve spoken with the seller and negotiated price, you’re ready to purchase your new home!
