All Your Questions Answered: Best Tips for First Time Home Buyers
June 14, 2021
“Where do I begin my home search?” “What do I need to look for in a home?” “Should I fly solo or hire the services of a real estate agent?”
As a first-time homebuyer, these are some of the questions that must be troubling you. No need to worry though. We are here to give you the answers to not only these questions, but to all of the common questions that first-time homebuyers tend to ask. Let’s start!
Common Questions Asked By First-Time Home Buyers
1) How Do I Start My Home Search?
This is probably the first question to come to your mind. The answer to this question lies in how well you know your financial conditions. You might be at a stage in your career where you can call yourself financially well-off, but the question is how well?
Knowing this will help you set a budget, which will make your home search much easier. Consider where you are in life right now, and where you see yourself in the next 5 years. This will help you a lot in planning your finances.
You might have no liabilities today, and a good source of income but as you grow older in life, and maybe start a family, the liabilities will increase. You need to keep all of those factors in consideration when planning your finances and deciding a budget for your home.
Once you have that sorted, you can start with an online search to find the best houses near you.
2) How Do I Find A Good Real Estate Agent?
You can start your search for a real estate agent by asking people in your social circle. You can also resort to the internet for finding the best real estate agents in your vicinity and create a list.
To better judge their expertise, you can prepare a questionnaire of things to ask. To help you in your search for the best real estate agent, we have curated this list of important questions you must ask before hiring them.
3) What Mortgage Options Do I Have?
There are two most common mortgage options offered by lenders in the market.
First is the fixed-rate mortgage. As the name suggests, in this type of mortgage the interest rate on the loan is fixed i.e. it does not change over time.
The second mortgage type is adjustable-rate mortgage or ARM as it is commonly referred to. In such a type of mortgage, the interest rates are fixed for a certain period, after which they are revised and adjusted periodically according to the market conditions.
Because the interest rate largely depends upon market conditions, which are difficult to predict, there is a much higher risk factor associated with ARMs, though initial interest rates are lower when compared to fixed-rate mortgages.
If you are looking to take the loan for a small time frame, then it is recommended to go for an ARM. For larger durations, the best bet is to go for a fixed-rate mortgage.
4) Besides home value, what additional costs will I have to bear?
Keeping the price of the home aside, you will have to bear several other expenses when buying your dream home. This will include things like property taxes, closing costs, and so on. Don’t forget the cost of moving as well. For instance, property taxes vary from one location to another. Similarly, the utility costs will be an added monthly expense besides the mortgage, once you have bought the home.
One of the most common mistakes that first-time homebuyers tend to make is forgetting these additional costs. If you already have an idea of how much these additional costs will be, you can be more efficient in setting your budget and selecting your dream home.
5) Do I Need To Get The Home Inspected?
Of course. A home inspection is an expert’s thorough review of the property to find if everything is fine and meets expectations.
Many first-time buyers think of home inspection as an additional cost. But if you ask any expert, they will tell you that inspection is very important. You certainly don’t want to get stuck with a home that requires immediate fixing, right after you bought it. Do you?
A home inspector will identify the problems with the home if there are any, which will ultimately work in your favor and strengthen your negotiating position.
Ready To Buy Your First Home?
This was our list of top questions that might pop up in your head as a first-time buyer. But we know that the list will not end here. There will be a lot more on your mind than just these five questions. To get answers to all of your questions and for the best help in finding your dream home, we recommend getting in touch with an Negotiator Recognized Partners. With their expertise and dedication, an NRP will ensure that you get the best deal possible.
So, what are you waiting for?