Homebuying Tips You Can’t Afford to Ignore.
Unless you’re a real estate investor, buying a home isn’t something you do every day. Belmont Realty’s Allison Cottingham offers these 5 homebuying tips you may not have thought of.
1. Get a realtor that you trust.
Many times, buyers are hesitant when it comes to using a realtor because they receive part of the home’s sale price. But, it is important to remember that the seller pays this commission, not the buyer.
Using a trustworthy and experienced realtor that works for you can help through the process of buying a home.
At Belmont Realty, our realtors obtain negotiation and communication skills and will prioritize your interests.
2. Be prepared to deal with a contract.
Buying a home is not always an easy process. There are many papers to sign and work through.
Something many people don’t realize is that these contracts can be negotiated. With the help of a trustworthy realtor, you won’t have to sign every standard agreement.
Things such as requesting extended time to go over inspections, waiving tests, or even requesting purchases subject to mortgage approvals can be included within the contract.
3. Know what you can afford.
Sometimes the house you can actually afford varies from what your mortgage company says you can afford.
Multiple factors play into what you can truly afford. Consider your income, mortgage, the market, interest rates, and other expenses.
Ask your mortgage broker to explain what is in play before you dig yourself into a hole.
4. Do not only be concerned with the purchase price.
The purchase price of a new home is only one piece of the puzzle. When it comes to buying and owning a house, all of the costs associated with your new home need to be considered.
When buying a home, ask your realtor about homeowner’s insurance, HOA fees, taxes, and maintenance.
Those can add up quickly if you’re not prepared.
5. Think about your student loan debt.
Lending laws tightened after the housing crisis of 2007 and 2010. One significant change is that student loan debts now treated as real debt.
In 2015, a change was made to the FHA guidelines that negatively affects those with student debts when buying their first home.
If your student loans are in deferment, you may want to enroll in an income-based repayment plan. This will give you the documents lenders need to assess your liability properly.