Thinking about owning a home? Great idea. Or is it? Just the thought can cause a surge of excitement to run through your veins. On the other hand, the commitment required may be causing you sleepless nights, and rightfully so.
Home ownership is an achievement that deserves to be welcomed with open arms. The question is, are you ready for the commitment?
First- timers are often victimized by their own lack of understanding about the process. Given that this is a large financial decision to make, intense preparation is key. So before you sign up for the challenge; do your homework, and take a good look at these common pitfalls:
1. Financial Readiness
Your credit report reflects your readiness to move on to the next chapter of your life: homeownership. Obtaining a copy of your credit report, before you even start your hunt, is a basic rule. It allows you the opportunity to repair any existing problems and ensure that your score is high enough to meet the lender’s criteria.
Meanwhile you need to know how much you qualify to borrow and what your monthly mortgage payments will be. A minimum down-payment will be required, as well as other charges that apply when the transaction is closed. Make sure you’re left with enough cash on hand to cover unexpected expenses. In any case, consult with an expert to determine if you are really ready commit to the process.
2. Professional Consultation
When you act on a decision half-heartedly, you may end up being easily distracted and lack the drive necessary to find the perfect home. For a first-time buyer, it’s always a good idea to devote your time to choosing an experienced realtor; one you enjoy spending time with, and one who really hears you.
They will help you sort through the endless possibilities. A seasoned professional can recognize potential problems that you may be unaware of. The time, energy and aggravation saved, will be money well spent. In most cases, a realtor’s ability to negotiate on your behalf will more than offset their commission fee.
Once you devote your time to diligently search for the right realtor; the right property will follow. Without a doubt, a clear head and knowledge of the process is needed to get through your first home purchase. The journey can be painful, but it is definitely one worth taking.