Are you commencing your real estate journey for the very first time? First-time homebuyers generally find the home buying experience daunting, complex and confusing. However, being adequately prepared will hell you make informed decisions during the buying process. Moreover, being prepared will give you a competitive edge against other home buyers vying for the same property as you. as such, carrying out thorough research will equip you enough to understand the home buying process. In this article we will highlight the 4-point checklist for first-time homebuyers.
Real estate agent
To start with, you will need a real estate agent to help you successfully navigate the home buying process. But who pays for the buyer’s real estate agent? After all, real estate agent fees are seldom included in the closing costs. In most instances, the seller has to pay for the buyer’s real estate agent’s commission. The buyer’s agent usually receives a commission between 2 – 5 per cent of the overall selling price. Your real estate agent will be your representative looking out for your best interests as the buyer. In addition, your agent will aid you in negotiating the offer terms. Moreover, your agent will identify properties of interest and research the market value of specific areas. It is imperative that you pick an agent with profound knowledge of your area of interest.
Real estate lawyer
Secondly, you will need to have real estate lawyer. Your real estate lawyer will act as a middleman between you and the seller. The lawyer will facilitate and ensure a smooth and legal transaction. Furthermore, the lawyer has to that terms of the transaction agreement are fully met. Your real estate lawyer will also be tasked with preparing a statement of adjustment. Lastly, your lawyer will also have to review inspection documents and make the necessary tax payments. The need for a real estate lawyer is even more amplified when buying a pre-construction home. Under such circumstances, your lawyer will carefully review the purchase and sales agreement.
A mortgage pre-approval is one of the most essential tools is determining what your limit is. Knowing your limit will also help you know which properties and the associated areas to focus your property search. This is where your real estate agent comes in handy as they will help you look for properties within your budget. One of the biggest things that first-time home buyers overlook is that your approved mortgage amount is not necessarily what you can afford. As such, ensure that you critically assess your finances and ascertain what you can afford. Do not forget to take all your financial commitments into account.
The down payment you make towards your property is a very important consideration for any homebuyer. For example, should you pay the minimum 5 per cent down payment, or save up for a bigger down payment. Needless to say, each consideration has its inherent benefits and setbacks. It is important that you consult a financial expert to take a look at your finances and advise on the best option for you. You will most likely be required to pay mortgage insurance if your down payment is less than 20 per cent. With this in mind, it is advisable to save up for as much of a down payment as possible.