If you’re feeling unsure about buying a home now, you’re not alone. As headlines proclaim foreclosures, unemployment and an unstable economy, it’s natural that you have some hesitation about pursuing your dream of having your own home. But if your finances are in order and your employment is stable, this time is among the best times to finally buy a home because of at least four things: among the lowest mortgage rates in history, low home prices, large inventory of homes for sale to choose from, and better mortgage underwriting.
You can also build on these advantages by planning ahead and doing your homework so you can acquire the best home for you and your family at a cost that you can comfortably pay month after month in the years to come.
When looking for new homes you should consider insurance for your home, be aware of how certain possessions may affect your rates. Having a pool or skateboard ramp may bring hours of joy and fun to your family and friends, however they can make a large impact on your rates.
Experienced realtors learn from every real estate deal they handle, turning the lessons they learn into useful information for home buyers. These are their best advice:
Save
As you go through the initial steps of home buying, continue to save for your down payment and your closing costs. The bigger your down, the less your monthly mortgage payment. If you’ve saved previously, you can use that as a reserve for monthly payments. Nevertheless, if you aren’t able to save enough for a substantial down, there are mortgage products designed for lower down payments.
Pre-Qualify
Getting pre-qualified means knowing how much you can borrow to buy a home based on basic financial information that you provide to the lender. Most lenders give free pre-qualification and don’t require you to obtain a loan from them. If you know the amount you can borrow, you can focus on a certain price range when you do your home search.
Credit Report
It’s best if you see your credit report earlier so you’ll have time to remedy if there are errors. Contact immediately your creditor and the credit reporting agency to correct any error. Every year, you can get a credit report for free from www.annualcreditreport.com.
Government Home Loan Products
You can choose from a number of mortgage products designed by the government to help Americans own homes. The FHA loans, Fannie Mae loans, Freddie Mac loans, VA loans and USDA loans are offered with zero or low down payment requirements. You can also take advantage of home loan assistance programs offered by your state or local governments. If you live in a foreclosure-hit community, it’s likely that there’s a Neighborhood Stabilization Program in your area offering rehabilitated foreclosures at much lower costs.
Home Search
List the factors you’re looking for in a home, such as location, number of rooms and type of home, and rank their importance to you. You can conduct your home search online and then drive around your targeted neighborhood.
Now that you’ve become an informed home buyer, contact a real estate agent working in the area where you’re buying a home and he or she will help you go through the next steps. Contact us here at Tampa4u.com Realty.