Guide for the First Time Buyers
Seeing how purchasing a home is going to be a major decision, especially being a first time buyer, you should know all there is to know about homes and mortgages. It can often get tiring, difficult, and intimidating, but if you take a look below you will see a bunch of tips that will help you make a decision and ease some worries that there may be.
How much can you spend?
Knowing how much is too much for your budget is a must. There are many things to consider: down payment, credit rating, regular monthly expenses, and income. Having this information will allow you to determine a comfy price range for your mortgage. Not only that, but you also need to see if your debt-to-income ratio is within respectable limits so you get approved.
Have a look in the following links to find some helpful tools for figuring out your budget:
-The Debt Ratio: Small article which explains debt-to-income ratio (http://onestop.umn.edu/finances/financial-wellness)
-Mortgage Calculator:Our site with a variety of financial calculator that will help you determine your mortgage payments and affordability (mortgagecalculator.one)
-Home Buying Tips:Site which offers many useful tips that will make you understand homes and mortgages better (https://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home)
Shopping for a loan consists in looking at your available offers and get what suits you best. The loan terms and interest rates need to be considered. On this link you will find most of the information that you need to know when shopping for a mortgage. (http://www.ct.gov/dob/cwp/view.asp?a=2235&q=390298)
After you figured out your price range, you can begin hunting for that desired home. The location, value, commodities and amenities make a good home. Number of bedrooms, bathrooms, and distance from stores/work need to be considered. You also need to check several houses, because you do not want to live with the thought that you might have lived somewhere better. Here is a link that will give you some insight in what to look for. (http://www.realtor.com/advice/buy/how-to-choose-the-right-home/)
Making an offer
When you buy a house, it is in your best interest to try and get the lowest price possible. Knowing how low to go is something that you need to know because you don’t want to hurt the relationship you have with the seller. Here is a link that will help you get the lowest price possible (http://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/making-an-offer-and-haggling-over-the-price/)
When you consider what house to buy, the overall shape of the whole building is important. You do not want the door to fall when someone knocks on it or the roof to blow a way at a gentle summer breeze. Inspecting all the plumbing, heating, electrical systems, windows, doors, ceilings, walls, air conditioning, and the foundation is a quick list of what you need to check. Here is a link that will tell you what else there needs to be checked. (http://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/top-tips-things-not-to-forget-when-viewing-a-property/)
You do not want to buy a home which will get destroyed and not be able to get the money back. A home insurance is a must, not only because of that fact but also because most landers require you to buy one. The insurance costs depends on the age, price, and location of your home. Check carefully to see what damage is covered by the insurance. Insurance payments will most likely be made using an escrow account, so give the lander your insurance information. Here are a few links to help you with your insurance.
-Homeowners Insurance:An explanation of a home insurance .(http://www.tdi.texas.gov/pubs/consumer/cb025.html)
-Mortgage Escrow (PDF) :Article which will explain all you need to know about an escrow account.
Signing the Papers
Also known as the closing, this is the last step that you need to do when buying a home. In this step, you finalize all the details on your purchase when both you and the seller must sign documents, and pay some closing costs. Here is a page that will enter in detail about the closing costs. (https://en.wikipedia.org/wiki/Closing_costs)