Top 6 Tips for Homebuyers
Buying a home may be a daunting task, especially if it’s your first time. The amount of cash involved is colossal and the fact that you’ll be consistently investing in this home for the foreseeable future can be scary. However, with expert advice from professionals and plenty of due diligence, you can buy your first or next home fairly seamlessly.
Here are a just a few top tips for homebuyers:
Know Your Budget
If you plan to buy a house, you need to budget for all the costs of purchasing the house. After deciding on a price you can afford, start saving for the down payment which may be between 5% and 20% of the cost of the house. A higher down payment will afford you a less expensive mortgage and a shorter repayment period. Other costs that you need to budget and save for include survey costs, legal fees, insurance, arrangement fee, and stamp duty.
Be Aware of Your Mortgage Options
Once you have saved enough cash for the down payment and are ready to meet the lender, take time to research your mortgage options. Learn the basics of mortgage lending, including the terms you’ll hear during the lending process. Explore interest rates and compare loan offers before moving forward.
Shop for a New House
With a pre-approved mortgage, you can start searching for your dream home. This starts with the neighborhood you want to live in and ends with finding most if not all of your ideal specifications. Be sure to find a real estate agent that is familiar with the area so you can have the best experience possible.
Prepare an Offer
To put in an offer that is fair to you and the seller, you may need your realtor’s assistance. Even with the realtor’s input, you should be familiar with inspection contingencies and earnest money, and confirm legal requirements before making an offer.
Perform Inspections and Appraisals
Similarly before you make an offer, it’s important to learn about the house’s structural integrity. You will need to engage technical experts to inspect the house and appraise it. The appraisals are needed to confirm that the house’s valuation is accurate.
Closing Day
This is the day that you legally assume ownership of the house. On this day, you transfer funds from the escrow and update the house’s title to your name. How exciting!
Our team of dedicated experts will walk you through the steps you need to take to find the right loan and select a mortgage with a competitive rate. We do this in a language you understand, avoiding business jargon that may confuse you. To learn more about home buying and the mortgage process, contact Lynx Mortgage Bank today.
Reference
[1] https://www.consumerfinance.gov/owning-a-home/
Lynx Mortgage Bank was founded by a small group of mortgage and financial professionals in Long Island, New York, seeking to offer customers a simple “no surprises” approach to the mortgage process. They offer a full range of products, from mortgages to home equity lines of credit.
Licensed Mortgage Banker; New York State Department of Financial Services.