Smart Steps to Take When Buying Your First Home
The first-time home buyer’s nightmare is to fall in love with a home, make an offer and find out that your dream home was every other first-time home buyer’s dream home. After making numerous offers, it can seem like and impossible goal to reach. The dream can come true and here are some ways to put yourself ahead of the competition.
Using a Realtor is a must. Not only using a Realtor, but a good realtor who knows the area. A seasoned real estate agent is best to work with when buying your first home. In a competitive market, a good realtor with extensive experience and good industry relationships often know of homes that might not be listed yet and can negotiate an offer before they event hit the market.
If you have found a good agent, that agent will probably expect you to be preapproved. Many realtors will not even take a client that does not have a preapproval amount from a lender. This also can be an advantage for a first-time home buyer who is unfamiliar with the home buying search and process. A preapproval will prepare you for how much you can afford and let a seller know you are serious and good for the offer. No one wants to fall in love with a house and discover that the house you have fallen in love with is out of your budget because you had no clue what your purchasing power was or lose out on it because another home buyer had a preapproval and you did not.
Sometimes taking a road less traveled can lead to your dream home. If you have a certain neighborhood or area you would like to purchase a home in try and locate rental homes. Get in touch with the landlords as some rental home owners may be interested in listing their home but just do not have it on the market yet. Your realtor can locate these homes in the area and also contact the landlords regarding a potential sale of the home.
Many first-time home buyers want a move in ready home. It is hard to see the potential in the ugly house for sale. This can be an easier purchase because the home needs updating or is not staged so many will just pass it over. Not only is a fixer-upper easier in the competition but also is eligible for certain home loans and money for repairs. An FHA 203k loan is a loan where you are able to borrow money for both the purchase of the home and the home improvements. Sometimes it is even easier to get approved for a 203k because it is guaranteed by the FHA. Lenders have less of a risk when using a 203k.
Look at broadening your search area. Sometimes looking just outside your target neighborhood can maximize your chances of owning your first home. Young families are often in search of a home in a good school district and often find a neighborhood that want to be in. Instead of focusing on the one neighborhood in that district that you love, broaden your search to include neighborhoods that are close and still are in the same school district.
Transitioning neighborhoods are areas that were in the decline but home buyers and businesses are coming in and revamping the area. This is a good option to go with because many first-time home buyers are skeptical of the current state of the neighborhood. The homes in the transitioning neighborhoods are more affordable. You get more home for the money and once the neighborhood is transitioned the home will be worth a lot more. A home in a transitioning neighborhood is a good idea, but depend on a realtor to help you buy a home that they know is going to appreciate.
Searching for and purchasing a home is an exciting step for a first-time home buyer. The market is competitive and with these tips you are sure to land your dream home.
