Buying a home is big decision, whether you’re a first-time home buyer or not. There are so many questions and unknowns swirling around in your mind that the whole process can become flat out overwhelming. In fact, many people choose to rent instead of buy a home just because they are intimidated by the buying process.
Have no fear! We have compiled this list of answers to frequently asked questions to empower those first-time homebuyers out there. If the time is right, take the leap!
1. Do I need a real estate agent?
YES! Missouri Home, Farm & Land Realty, LLC, isn’t the only one who recommends using a real estate agent. The U.S. Department of Housing and Urban Development also suggests buyers utilize a realtor that will evaluate your interests and needs and narrow your housing options according to your criteria. Many first time buyers wonder about the fees associated with hiring a real estate agent. There are no guarantees, but most of the time the realtor fees are covered by the seller.
2. Should I talk with a bank before looking at homes?
Although it’s not mandatory to start at the bank, it is smart to get pre-approved before you begin looking at homes so you know what you can afford. There is nothing worse than falling in love with a home that is out of your price range! Talking with a bank can also inform buyers about costs associated with buying a home as well as first time home buyer programs, if available.
3. Where do I find a loan?
Some first time buyers don’t realize that a bank isn’t the only institution that can give out loans. We recommend that you consult with several lenders before choosing one because every vender offers different interest rates and fees that can impact your monthly mortgage payments. Some different financial institutions to consider include: traditional banks, mortgage brokers, credit unions, and government lenders.
4. What happens at closing?
A home is not officially purchased until closing takes place. Closing is when you sign all of the loan and ownership paperwork. At this point, you are the new owner of the home! There are costs that you will be responsible for at this time including fees for loan origination, loan applications, appraisals, housing surveys, and your first month of homeowner’s insurance. Be aware that these costs can be up to 8% of your purchase price.
5. Should I buy or continue to rent?
This question has a different answer for everyone because there are so many personal factors to consider. Buying a home can be a wise investment, but at the same time renting can be a better choice depending on the circumstances. Some factors to consider when determining whether to buy or rent are:
- Length of time you plan to stay in a home
- Responsibility of maintenance and upkeep
- Cost of renting vs. buying
- Current mortgage rates
6. How many homes should I look at before making an offer?
There are no rules when it comes to the number of homes you should look at before making a decision. Sometimes you know the moment you walk into the first home that it’s THE ONE. Other times, you might look at several homes before finding one you are interested in. Either way, don’t feel like you are making a mistake. The bottom line is, make an offer on the home that meets your needs, fits your budget, and just plain feels right! Don’t look for a magic number.
If you’re a first time home buyer, you probably have even more questions you’d like answers to. We can help! Contact any of our qualified real estate agents today by giving our office a call at 417-777-3300 or reaching out HERE on our website.
