Buying a home is a big decision, whether you’re a first-time homebuyer or not. There are so many questions and unknowns swirling around in your mind that the whole process can become a bit overwhelming. And with the market as hot as it is right now, you may have to move fast, adding to your anxiousness.
But, have no fear, friends! We have compiled this list of answers to frequently asked questions to help those first-time homebuyers out there. If the time is right, take the leap! You’ll be happy you did. 🙂
1. Do I need a real estate agent?
Yes, it is in your best interest to find a trusted realtor to help you in your search. Your real estate agent can help you evaluate your interests and needs and hone in on your housing options according to your criteria. They also help negotiate on your behalf and can provide a wealth of knowledge to help you navigate this large of an investment. 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 isn’t a bad idea 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! Plus, sellers know you are serious when you have that pre-approval taken care of.
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. Consider consulting 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 the closing takes place. Closing is when you sign all of the loan and ownership paperwork. At this point, you are the proud new owner of the home! There are costs that you will be responsible for at this time possibly including fees for loan origination, loan applications, appraisals, housing surveys, and your first month of homeowner’s insurance.
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 can include the following:
- Length of time you plan to stay in a home/area
- 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 set 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 feels right to you and your family! 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.
