Top Tips For Home Buyers

TOP HOME BUYER TIPS

Getting a thorough professional inspection before buying a house is a must. While it’s exciting and a relief to have your offer accepted, sometimes inspections can uncover serious issues. Here are eight areas that are most relevant to passing a home inspection.

1. Start Saving Early

Pay Off All Debt and Build an Emergency Fund 

2. Decide how much home you can afford

  • Determine How Much House You Can Afford.
  • Save a Down Payment

3. Check and strengthen your credit

Credit score check.

4. Explore mortgage options

  • Adjustable-Rate Mortgages (ARMs): ARMs might seem great with a low initial interest rate, but they allow lenders to adjust the rate to transfer the risk of rising interest rates (and monthly payments) to you.

  • FHA Loans: You may be able to get an FHA mortgage with as little as 3.5% down, but you have to pay a mortgage insurance premium (similar to PMI) for the life of the loan. That’s thousands of dollars that won’t go toward paying off your mortgage.

  • VA Loans: VA loans allow veterans to buy a home with no down payment. But if the real estate market shifts, you could easily owe more than the market value of your home. These loans also carry a bunch of fees and usually charge interest rates that are higher than those for conventional loans. 

Dave Ramsey only recommends a 15-year, fixed-rate conventional mortgage with a 20% down payment. Here are the reasons why:

  • A 15-year term creates a higher monthly payment, but you’ll pay off your mortgage in half the time, have a lower interest rate, and save thousands of dollars in interest.

  • A fixed-rate conventional loan keeps your interest rate the same for the life of the loan, which protects you from the increasing expenses of rising rates.

5. Research first-time home buyer assistance programs

  • VA
  • FHA
  • Etc

6. Compare mortgage rates and fees

  • Rates
  • Terms
  • Closing Costs

8. Choose a real estate agent carefully

Good, Better, Best

9. Pay for a home inspection

Find out as much as possible.

10. Negotiate with the seller

Find out as much as possible.

Key Takeaways

  • Identify your needs. …
  • Know the true cost of your new home. …
  • Build your savings now. …
  • Build your credit wisely. …
  • Research your mortgage loan options. …
  • Know what you qualify for before you begin shopping. …
  • You don’t have to do this alone. …
  • Make the decision in your own time

We hope the above information helps explain some of the

Top Tips
For New Home Buyers

The home inspector evaluates the condition and quality of the home and reports the findings and opportunities for improvements.

BOOK INSPECTION