When it comes to buying a home, there are many factors to consider. Of course, the most obvious factor is your current financial status, and how much you can afford to pay. The process of buying a home can be nerve-wracking for first time buyers. In order to make this process a little more simple, a real estate attorney can give you some insight and advice. Here in this article, we have provided tips for those who are just now venturing into the world of real estate.
#1 Start Saving Right Away
If you have not already started saving, you should do so right away. It is not uncommon for lenders to require 20% down. The more you put down, the less you will have to pay monthly over the lending term. Do some calculations to figure out what is in your range, how much you can start saving each month, and at which date you plan on buying a house. You can create an automatic savings account if it is difficult for you to set aside money as it comes into your pocket.
#2 Check Your Credit Report
Your credit score and report will be a main factor in whether you are approved for a loan or not. If anything on your credit report does not look right, submit a dispute for errors now. These mistakes may be unfairly dragging down your credit score, and could impact the buying process. You can also see which debts need the most attention, so you can start paying off the really high amounts now.
#3 Hold Off On New Credit Activity
When applying for a new credit account or taking out a loan, the lender may run a hard inquiry. When this happens, your credit score can temporarily decrease. Try to avoid opening any new credit cards or loans during this time.
#4 Set Aside a Fund for Post Move-In
Do keep in mind that after you buy your home, there will likely be many more investments you will have to make. Budget for home improvement projects, new furniture or a security system if that is what the house may need.
#5 Remain Under the Preapproval Limit
When your agent is showing you homes, check out properties that cost just a bit under the amount you have already been approved for. You can afford to pay up to your approval limit, but this is not taking into consideration any appliances that require replacing. For example, floorboards may need polishing or a leaky ceiling may need attention. Give yourself some extra room financially that can go towards these imperfections.
The real property lawyers Roseville, CA recommends can offer professional legal services as you are looking into purchasing a new home. While making a life-changing decision, you can benefit from someone working on your behalf. The last thing you will want is to leave a deal realizing that you have been conned or taken advantage of.
Thank you to our friends and contributors at the Yee Law Group for their tips and insight into real estate law.