Ready to take advantage of low interest rates or sick of your living situation with the pandemic?
In this video I will give you 5 tips for buying your first home
Home sales jumped a record 20.7% over the summer due to the low interest rates.
Tip one:
Determine your down payment and monthly housing cost
- 20% down is traditionally what lenders prefer
- Discuss with a mortgage broker or lender your options if you have less than. 20% for down payment
- Research the low-down-Payment options available such as FHA (Federal Housing Administration) loans and conventional loans
- A lower down payment can mean you will pay a higher interest rate
- Determine your monthly housing cost by adding cost of the mortgage payment, taxes and homeowners insurance
- Check in with your budget to determine if you can afford this big purchase
Tip 2
Get pre-approved for a home loan
- Your offer has a better chance of being accepted with a pre-approval letter from a reputable institution
- Pre-qualification and Pre-approval are not the same
Tip 3
Approach Fixer-Uppers with Caution
- Be realistic of what you can afford if you buy a fixer-upper
- Be careful not to overextend yourself
- Be aware renovations usually cost more than anticipated and take longer than expected
Tip 4
Limit your demands
- Be mindful of how many conditions you try to negotiate in the offer
- Get a home warranty
- Look into an inspection contingency in the event of extensive repairs
Tip 5
Do your Due Diligence so you are ready
- Lay out priorities
- Research the market
- Research the professionals (such as realtor and mortgage broker)
- Be practical
- Be ready to act
