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First-Time Homebuyer Essentials
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- Brokerocity
- 2024-05-16T15:38:00Z
You don’t buy a home every day, and that’s why it’s normal to have jitters and doubts as a first-time home buyer.
How expensive a house can I afford?
What will my monthly mortgage payment be?
What credit score do I need to buy a house?
How can I improve my credit score before applying for a mortgage?
How do I find the right neighborhood?
Many such questions may flood your mind when you make up your mind to buy your first house. This blog will address many such doubts and ease your home buying journey.
Ask Yourself If You’re Ready
It’s not only a financial decision but an emotional one too. You must sit with yourself and assess if you are making the right decision. There’s always an opportunity cost associated with an investment. Ask yourself if
Am I financially ready to buy a house?
Is this the right location to settle in?
Is my partner ready to share the financial burden of a mortgage?
Is my job stable enough to pay the mortgage?
These questions will allow you much-needed introspection before making up your mind.
Check Your Financial Readiness
No matter how ready you feel to buy your first home, you must not jump into it without checking your financial readiness. You must assess your decision on two parameters: affordability and credit score. Evaluate your income, savings, and investments to see your financial standing. Do you feel you have enough funds to pay the down payment? If yes, would you be able to bear your other expenses and contingencies? If not, you must rethink your decision to buy the house.
The next thing is evaluating your credibility in the eyes of lenders. Your credit score is an indicator of your trustworthiness as a home loan applicant.
Get Preapproved for Home Loan
Once you've got a clear picture of your financial readiness, it’s time to get pre-approved for a mortgage. The process involves applying with the lender and getting reviewed for your financial standing. Once you’ve completed the process successfully, you will get a pre-approval letter. You know your budget now because a pre-approval letter reveals how much you can afford to pay. This is where a real estate agent/broker pitches in and helps you find your dream home within your budget.
Find the Right Real Estate Agent
A real estate agent is the catalyst in the home buying process. Knowing your budget, they will show you the most suitable properties with credible details. They help you with house-hunting, schedule tours, negotiate offers, and close deals. They also assist you with essential paperwork and legalities. With real estate transactions going digital, many buyers look for a trusted agent online. You can check reviews, ratings, and client stories to learn more about a real estate agent.
If you are looking for properties in Algonquin, our agents at Brokerocity can take you one step closer to your dream house.
Check Out the Properties
When you look for your dream home online, your agent offers you the facility to tour the houses virtually. It saves time and helps you get a better picture of a property before planning a physical tour. When considering a property, you must consider the following details:
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Price
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Square footage
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Home condition and the possible need for repairs
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Access to public transportation
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Number of bedrooms
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Backyard/swimming pool
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Local entertainment options
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Local school district ranking
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Property value trends
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Property/real estate taxes
You can check out the top properties in Arlington Heights here.
Make an Offer
It’s time to make an offer. Once you have selected a home, you must express your intent to buy it. Typically, buyers show their intent by submitting an offer letter. In the digital age, you can submit your offer online as well. If the seller accepts your offer, you move on to the next step. If they reject, you may revise the offer or move to the next-best property.
Get Home Inspection and Appraisal Done
Once your offer is accepted, you must get the home inspection done. It’s not mandatory but recommended to assess the property’s structure, utilities, safety, and appliances. You can ask the seller to fix the minor and major concerns revealed in the inspection report.
After that, it’s crucial to get a home appraisal, where the current value of the home will be determined. This report will help you get the right mortgage amount from the lender.
Have a Final View
You’re almost done. It’s time to take the final tour and walkthrough of the property, documentation, and compliance. Check if the repairs required are done and if nothing is left behind by the previous owners.
Close the Deal
It’s time to call the house your new home. Your lender will issue a closing disclosure, which you must present at the closing meeting. Sign the settlement statement, pay the down payment and closing costs, sign the mortgage note, and close the deal.
Congratulations! You are a homeowner.
As a first-time home buyer, you can always trust our agents at Brokerocity for credible properties in Barrington, Algonquin, and Arlington Heights. We practice the utmost transparency in our real estate dealings, making your first-time home buying journey smooth and secure.
Connect with us today to find your dream house.
