Tips on Home Investment
It is equally important that you take time to prepare for every aspect in the process of acquiring your first home knowing that this kind of investment will be one of the biggest financial steps that you will ever make in your life and one important decision that you have ever made.
Examine yourself if you are financially ready to buy a home
When you desire to buy your first home, the first thing in mind and what you should do is determine if you are ready to buy a home, weighing down between what expenses will you be incurring when you own a home than just renting one, such as cost for repairs, utility costs, house taxes, insurance and searching to know exactly on the reason why it is time to buy a home, if the reason is valid or whimsical, and, most important, is your financial status, such that you have to be financially prepared with your savings, emergency fund, with no debts to pay, knowing your credit score status, so you can apply for a mortgage loan.
It is essential that you take time to do research for a house loan and try to get in touch with a mortgage broker who can help you recommend on lending institutions or your local bank to suggest the process of a house loan or a credit union to know your credit score status; in this manner, you are able to know first if you can qualify for a house loan, how much loan can you secure, which include the terms of payment that you have to be pay monthly, so that all these will help you to determine the price range of the house that you can afford to buy.
When you have determined how much loan will be granted for you to buy a home, find a competent realtor, who can provide you with recommendations based on your home specifications and who can explain the real estate market procedures, so you will have a better decision to choose which among the house options offered to you will you make; therefore, inquire from friends, search online for local realtors, come up with a listing and call them up, until you can conclude on a realtor who you are comfortable with.
Request for a home appraisal
As soon as you have selected the home you like from the lists of options given to you by your realtor, hire an independent home inspector who is able to properly appraise your chosen home on whatever existing problems that he can find, like presence of pests, molds, kinds of repairs to do, foundation problems so that when you are provided with the appraisal report, you can negotiate for a lower price to the home owner.
Be patient to learn the escrow process
In most home transactions, an escrow service is often requested and this is to protect the interests of the buyer, seller, and the lender, such that the escrow holder makes it a point to ascertain that all documents, money and other pertinent information are all handed over before closing the house deal, therefore, take time and wait until the escrow procedure is done.