Buying a home can be nerve-wracking, especially if you’re a first-time home buyer. Not only is it probably the biggest purchase of your life, but the process is complicated and fraught with unfamiliar lingo and surprise expenses. What if you make a mistake? No need to worry…To make the first-time home buying journey a little less stressful, our good friend and real estate agent Eric Blanchard joins us on this Worth It episode to share five tips to help you navigate the home-buying process!
As an added bonus, we’ve created a free PDF of 7 Questions to Ask Yourself When Buying a New Home. We recommend you print this out, answer this questions in advance and bring it with you on your viewing to keep your priorities in check and as a reminder to ask your real estate certain questions.
To make the first-time home buying journey a little less stressful, our good friend and real estate agent Eric Blanchard joins us on this Worth It episode to share five tips to help you navigate the home-buying process! @Worthit_Podcast… Click To Tweet
Before you start looking for your dream home, you need to know what’s actually within your price range. When you’re taking out a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your interest rate and possibly the loan terms. Check your credit before you begin the home buying process. Dispute any errors that could be dragging down your credit score and look for opportunities to improve your credit, such as making a dent in any outstanding debts. If you’re applying for a mortgage soon, avoid opening new credit accounts to keep your score from dipping. In addition to saving for a down payment, you’ll need to budget for the money required to close your mortgage, which can be significant. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowners insurance, home inspections, and title searches.
Real estate agents are important partners when you’re buying or selling a home. Real estate agents can provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. It is paramount that you find an agent you feel comfortable confiding in and trusting with the most expensive purchase of your life thus far. Ask for referrals and recommendations from close friends, then start meeting with agents. And best of all, it doesn’t cost you anything to use an agent – they’re compensated from the commission paid by the seller of the house.
An agent’s knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. @Worthit_Podcast @DRGranger #worthitpodcast #RealEstate #HomeBuyer #FirstHome Click To Tweet
When deciding where you want to buy your first home, there are a wide variety of factors that will help you make a decision. Even if the price is right, you’ll want to consider other factors, like the neighborhood that house is in. What is the traffic level like in the areas you like best? Not just after work, but in the morning and on weekends. Consider access to shopping, restaurants, nightlife and grocery stores. Will it be expensive to enjoy life in your new neighborhood or affordable? Are there other people around you with similar goals, like raising children? All of these factors should be considered when planning to purchase a house. Great real estate agents should be able to provide some basic information about the neighborhood you are considering.
Take as much time as you need to find the right home. Then work with your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Once you and the seller have reached agreement on a price, the house will go into escrow, which is the period of time it takes to complete all of the remaining steps in the home buying process.
You’ve done your homework and know your local market. You have a list of sales comparable to the house you’re interested in, and you’re ready to make a smart offer. Your real estate agent can provide you with a Residential Purchase Agreement that complies with applicable state and local laws. In some states, it is common for a lawyer to be a part of the offer paperwork process.
You’ve put in the research and hard work, now let’s make sure you keep a cool head when you’re out there viewing homes. It’s easy to get carried away when home shopping, but this checklist of 7 questions to ask yourself will help you keep your priorities top-of-mind!
Get it here:
Take as much time as you need to find the right home. Then work with your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. @Worthit_Podcast @DRGranger #worthitpodcast #RealEstate… Click To Tweet
Eric Blanchard is not affiliated with LPL Financial.
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