First-Time Home Buyers

Ditching the landlord and taking the leap into the realm of home ownership? While it can be frightening, consumers who have the resources to buy a home shouldn’t shy away from this type of financial decision. But you must be prepared, and you much have the money to do so, or you may incur years of unavoidable debt. With the help of your REALTOR® or real estate representative, and some research, buying a home for the first time will be less daunting and complicated. The best thing you should do is to not rush into a decision and to prepare well ahead of time.

Here are some things to consider when thinking about buying a home:

Know When Is The Right Time For You

Before you even look at homes online or in the newspaper, make sure that you can buy a home. Check your finances, your credit score and budget accordingly. Ask your real estate professional or your representative at your bank to check over your financial situation to determine whether you’re ready. If you aren’t or if you feel like you aren’t, start saving what you can. Even if you choose to buy a home, you’re going to have to cut your spending considerably.

Need help? We can assist you with all your real estate needs and questions. Submit the information and a member of the Madison Group  will contact you.       

Know How Much You’re Going To Spend Before You Look

After you have found out that you’re ready to buy a home, it’s time to budget yourself. Determine how much you’re willing to spend to purchase a new home, as well as for down-payments – something that usually gets left until the last minute.

Need help? We can assist you with all your real estate needs and questions. Complete and submit the information in the side bar and a member of the Madison Group eXp  will contact you. 

Find The Right Real Estate Representative

 If you haven’t already, you should acquire the assistance of a real estate professional. As a first-time buyer, you should never go solo when buying a home. A real estate professional can give you advice on what home is best for you, as well help you search for the most fitting home for your needs.

Need help? We can assist you with all your real estate needs and questions. Complete and submit the information in the side bar and a member of the Madison Group eXp will contact you.

Know What You Need

Once you acquire the assistance of a REALTOR® or agent, start looking for a home that suits your needs. If you’re thinking for the future, take that into account when deciding which home is best for you. But don’t be over the top—be realistic when searching for that first home.

Need help? We can assist you with all your real estate needs and questions. Complete and submit the information in the side bar and a member of the Madison Group eXp will contact you.

Get A Home Appraisal and Inspection

To receive a quality mortgage, homeowners will need to hire an appraiser. An appraiser values your home based on the surrounding market and the condition of the home. Finding a reputable appraiser is crucial because an overvaluation can be detrimental to your economic health. An inspector is someone who comes in to check out the physical condition of your home. Hiring an inspector will let you know if you must spend extra money on renovations or construction. Do this before you close on the deal – you don’t want to spend considerable money after you’ve bought the home.

Need help? We can assist you with all your real estate needs and questions. Complete and submit the information in the side bar and a member of the Madison Group eXp will contact you. 

Mortgage Services

Should You Get Pre-Approved for a Mortgage?

Definitely!!  Consider these Scenarios:

You’re out looking at homes. Your Real Estate Broker never mentions that you should get pre-approved and just ballparks what you can afford. You find the perfect house and work out a deal with the seller. Three weeks later, the lender informs you that the house is $10,000 over what you qualify for and does not approve your loan. The seller has already bought another house. You’ve given notice where you’re renting and told all your friends about the great house you bought. And then, there’s the money you’ve already spent on inspections on a house you can’t own.

OR

You and your REALTOR® have been working diligently finding that “perfect” home. A new listing comes on the market that’s priced right and has got everything you’ve been looking for. You write an offer. Your REALTOR® takes it to the listing REALTOR® and is informed that another offer is coming in and will have to present both offers simultaneously to the Seller. The other Buyer is pre-approved for his loan. Whose offer do you think the seller will negotiate first?

Interested in mortgage information or seeking pre-approval? Click the link below for all your mortgage needs!

 Mortgage Information and Pre-Approval 

 How Much Do I Qualify For?

Most mortgage lenders take the guess work out of applying for a loan by figuring out for you the amount you can afford to borrow. Then, they give you a printed document stating the maximum mortgage amount you qualify for based on your finances and income.  Mortgage pre-approval establishes your price range and strengthens your buying position by letting the Seller know that you have already been approved for the loan. It can also ease time constraints once the purchase agreement in signed between Buyer and Seller.

For more information about qualifying for a mortgage and getting pre-approval, click the link below.

What Size Loan Would I Qualify

Don’t Forget About Those Closing Costs

After purchasing a home, you may be faced with “extra charges”. Understand the various fees that you’ll have to pay before the close of the sale, so you could save accordingly. These fees can include legal costs, land transfer taxes, disbursements and many others.

Need help? We can assist you with all your real estate needs and questions. Complete and submit the information in the side bar and a member of the Madison Group eXp will contact you.     

Buying a home should be an exciting period for you, and while it seems complicated and difficult at first, prevailing through the challenges isn’t as hard as you think. We are here to talk about it with you, answer any questions or get you started. 

Dealing with Financing

As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.

Get pre-approved. Sub-primes may be history, but you’ll probably still be shown homes you can’t afford. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.

Choose your mortgage carefully. Used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time—and given the current real estate market, you should—taking the points will save you money.

Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with sites like Zillow. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.

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