The process of buying your first home can be overwhelming and challenging at the same time. There are so many things that you need to keep in mind while purchasing a new home. However, if you’re aware of all the challenges and take precautionary measures accordingly, you will be able to buy your first home with ease. Dallas, TX real estate has a lot of homes listed currently and we have put together some great home buying tips for first-time homebuyers to help make your experience as smooth as possible.
Research is the key to home buying
Before you take the plunge and try to buy a home, make sure you do your research. This is especially critical if you’re buying your first home. You need to make sure you know what you’re getting into. This can help you avoid a lot of headaches down the road. You need to understand how the real estate process works. You also need to understand how much different types of properties are going for in your area. The more you know ahead of time, the smoother the process will go. Connecting with a knowledgable real estate agent will drastically increase your understanding of the process. We recommend you always have an agent at your disposal.
Know your mortgage options
When you’re trying to buy a home, you have to get pre-approved for a mortgage. This is the only way, to know, for sure how much money you’ll be able to borrow. This is also the time to shop around for a mortgage lender. You might be able to get a better interest rate from one lender than another. And, you could save thousands of dollars in interest over the life of the loan. You can also shop around and see if any of your friends or family members have recommendations for mortgage lenders they’ve had success with. That can give you a leg up in the process. At MTX Realty we recommend you speak to a few different lenders. Below are some preferred Lenders we Trust and our clients have had a great experience with.
- Service First Mortgage
- Natalee Davenport
- (972) 523-3564
- https://sfmc.com/teamdavenport/
- Fit Lending
- Jennifer Garland
- (214) 422-0029
- https://www.fitlending.com/team/jennifer-garland/
Get pre-approved for a mortgage
Once you’ve gotten pre-approved, you’ll know exactly how much money you can borrow. You can then use that figure to help determine how much house you can afford to buy. Many experts recommend that homebuyers only spend up to a maximum of 28% of their gross monthly income on their mortgage payment. So, if you make $5,000 a month, you should be looking at homes that cost no more than $1,500 a month in mortgage payments. If you can’t make that work, try and saving a little more for the downpayment or ask the lender about buying your interest rate down. This will decrease the monthly obligation.
Find the property that fits your needs
Once you’ve found a few properties that fit your needs, it’s time to make an offer on the one you want. You don’t want to be overly aggressive when making an offer. You just want to make an offer that the seller will accept and the market will support. Remember, the seller wants to sell their home as much as you would like to purchase it. So, you need to be conservative with your offer. Remember, if the seller accepts your offer, then you have a binding contract on the house. That means that both you and the seller are obligated to go through with the sale. If you back out, you have broken a contract and could be sued for breach of contract. The seller could go after the money that they lost because of the broken contract. This is simplified version of how the contract works but your real estate agent will of course review all of the contractual items and ensure you understand the process.
Don’t forget about the little things
Make sure you’re taking care of all the little things before closing on the property. You want to make sure you’ve got homeowners insurance in place. You also want to have set up all utilities before the move in date. Remember, every city is different and sometimes water companies require certain documentation before the water can be turned on. The last thing you need is to get moved in and have to wait a few days before you have water or electricity. Don't forget to forward your mail and call everyone you do business with to change your address to the new home. The most important item, ensure you get a final walkthrough before closing on the property and address any issues.
Summing Up
Buying a home is a huge step, but it’s also a really exciting one! You’re taking a big step towards financial freedom. When you buy a home, you’re making a big investment in the future. You’re also taking a big step towards financial independence and being able to live on your own. There are a lot of things to keep in mind when buying a home for the first time, but there are also plenty of tips and tricks to help you along the way. The more you know ahead of time, the smoother the process will go. Reach out to one of MTX Realty's Agents and they will be more than happy to walk you through the process!
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