First Time Home Buyer Tips
November 2020
Buying a home can be very intimidating, especially for first-time home buyers. Ascension Credit Union is here to help your first-time home buying experience a little less stressful. Here are four helpful tips when buying your first home.
Do your research
Finding the right home is not always an easy task. Most buyers do a lot of research before ever stepping foot in a home. This research should include details of neighborhoods, schools, and other aspects that are important to the buyer. Buyers spend about six to eight weeks just trying to figure out where they want to live. Once a buyer picks a neighborhood, they usually go on at least three house tours before deciding on the right home.
Get a loan
When it comes to buying a home, it’s usually best to get loan preapproval in advance. Preapproval isn't a guarantee that you'll ultimately get the financing, but it lets you know for sure how much the buyer can afford. Many sellers won't look at an offer without some assurance that the buyer can get a loan. FHA loans are popular first-time buyer loans because the minimum down payment requirement is much less than a conventional loan. You can ask your agent for a referral to a mortgage broker or check with your own bank or credit union. What's most important is that you compare the types of mortgages available to you and shop for the best terms.
Negotiate the offer
Buyers sometimes make the mistake of comparing the sales price of a home to other homes they've seen. Sellers can ask any price they like, and it doesn't mean that the home will actually end up selling at that price. An agent can provide comparable sales and pending sales. Comparable sales are similar home types in the same condition and location that have sold within the past three months. A comparison is made based on location, age, lot size, square footage, style, and features. Exact comparable sales are rare, but the differences are weighed to establish whether they add to or reduce the sales price. Your agent can give you a reasonable price range and help you manage your expectations.
Have a home inspection
In some states, a home inspection is conducted before buyers make a purchase offer. It's a contract contingency in others. A contract contingency means a buyer has the right to cancel the contract if the inspection turns up problems. Sellers generally aren't required to make repairs if problems are discovered during a home inspection, but sometimes a seller will agree to repair or reduce the sales price rather than blow the deal when a buyer makes a request for repair.
Ascension Credit Union wants you to find the home of your dreams!
If you have any questions or concerns during your home buying process, call us at 225-621-2800 or visit our website ascensioncu.org!
