Buying Your First Home? Don't Stress!
On average, a prospective home buyer looks at 10 homes before finding the one they want. This alone can be stressful, and it doesn't help that you have to jump through hoops the get a mortgage. However, try to enjoy this time. Buying your first home is exciting, and with these tips presented by The Boyd Team, it can be more pleasant and not stressful.
Ultimately, you have less stress if you remain optimistic, and this can result in more confidence. When you look on the bright side, you can better focus on everything you need to accomplish, and you can do so with a clear head. Only 11% of mortgage applicants fail to receive approval, so you're likely to be able to get a home loan.
Determining Your Budget
You improve your home buying experience and avoid disappointment when you know exactly what you can afford. As you prepare your budget, research home prices to get a better understanding of what’s available and what buyers are asking.
To understand how much you can afford to spend, determine your debt-to-income ratio (DTI). This involves calculating all your expenses and comparing this value to your gross income. As a general rule, you ideally want a DTI that's less than 20%, but some lenders may find anything less than 36% acceptable.
Finding a Lender
Although you can find local lenders in Safety Harbor, FL, you can get in touch with lenders all over the country via the web. This is beneficial since you have a wider selection of lenders to choose from.
As you're looking for a lender, compare rates from multiple prospects to find the best rate and terms. It doesn't harm your credit immensely if you apply to multiple lenders within 45 days. They all show up as one inquiry since credit report agencies realize you only end up with one mortgage.
Comparing Real Estate Agents
After you find a lender, look for a real estate agent who's local to the area. Check out reviews about the agents. See what people liked and disliked as they worked with an agent. Speak to or meet with the agent to see if you mesh with the person.
Looking for the Ideal Home
Before you begin your home search, know what features you need in your new home versus those you want. If you fail to do this, you may find yourself spending more than you had in mind. For instance, you may need a certain number of bedrooms and bathrooms, while you may want granite countertops.
Making an Offer
Once you find a suitable home in your price range, your next step is to make an offer. Your agent does most of the work during this process. You just need to have your preapproval lender handy and work closely with professionals like The Boyd Team to determine the offer amount that wins over the seller and benefits you as the buyer.
Getting a Home Warranty
Last but not least on your to-do list, purchase a home warranty to help cover the cost of any repairs, ranging from plumbing issues to electrical problems. A home warranty may seem like an optional expense, but the amount of money it can save you over the long term makes it an essential part of the home-buying process. Before deciding on one, check out reviews for the home warranties you're considering to ensure you’re getting a great deal.
Buying a New Home Doesn't Have to Be Stressful
You can enjoy the home-buying process if you know what steps to take. It also helps if you find the right agent in Safety Harbor for the job.