You did it. You saved enough money for the down payment on a house here in Omaha and the extras such purchase might entail. I know you are so excited you could jump up and down in a water puddle or play tunes on a purple piano. Now, how do you go from looking at millions of houses online (I exaggerate) in your price range to actually making an offer? Here are 6 Tips for First Time Home Buyers.
6 Tips for First Time Home Buyers
Before house hunting, get pre-qualified – talk to different lenders and see who offers the best rates and terms. Lender fees can vary quite a bit from one to the next. The mortgage industry has three main types of lenders: big banks and credit unions, mortgage bankers and mortgage brokers.
The big banks have checking and savings accounts and car loans and home loans and just about anything you might need for your financial needs.
Mortgage bankers focus on home loans, and they use their funds to make loans. Mortgage brokers contract with banks, mortgage bankers and private lenders to arrange for home loans.
Pre-qualification gives you great information about how much house you can afford. In addition, it allows you to move quickly if you find the right house.
Get professional help – Find a realtor you can trust. Yes, you have unprecedented internet access to sellers’ information. A realtor, however, has years of experience that can help you with everything from the area, the appraising of a dwelling, the paperwork, the comparisons, and negotiation on price
Check out the schools – What is the reputation? Can the kids walk to school? Is there an alternative school available, like a charter school or parochial school if the public school doesn’t work out?
Three more of 6 Tips for First Time Home Buyers.
Always hire a general home inspector – Hiring a home inspector is recommended right after the offer-to-purchase contract is signed and before executing the final purchase and sales agreement. A part of the offering should be a clause that ensures that the purchase obligation is contingent upon the findings of a professional home inspection. The inspector will examine the exposed portions of the home, such as the roof, attic, walls, ceilings, floors, windows, doors, foundation, heating/cooling systems, interior plumbing, electrical systems, and appliances.
Beware of sleeper costs – Comparing the monthly mortgage payments to paying rent is only part of the story. The bank may require property taxes and insurance to be part of the monthly mortgage payment. Then there’s the unexpected. When a couple I know first moved into their house, the front, cement porch collapsed costing them $1.500 to repair.
Understand the need for Title Insurance. The seller produces and signs a warranty deed at the real-estate closing. It includes a full legal description of the property and pledges that the seller owns clear title to the property changing hands. The warranty deed also guarantees that the property is free of all liens and encumbrances. Title insurance can further strengthen warranty deeds which compensate the property owner in case of any third-party claim on the property.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast to resolve any situation.
If you’d like to give us a ring, we would be more than happy to spend some time with you to help you understand the process and to get all of your questions answered.