Are you planning to buy a home for the first time or are you among First-Time Home Buyers? Well, that’s undoubtedly a smart financial move. However, you may have to face certain challenges such as finding the right location or financing your purchase during the initial phase.
So, before you take a step ahead in achieving your American dream of homeownership, you should gain some practical knowledge of investing in real estate. It will help you get a bird’s eye view of the current market situation, ensure you won’t end in smoke, and make your abode journey easier.
Considerations Before You Take the Plunge
Here are some basic yet important questions you need to answer before proceeding. They will positively help you navigate in the right direction.
1. What Kind of Property Will Meet Your Needs?
Buying a home for the first time can be a test of your patience and forbearance. Don’t get us wrong, but finding a home that meets your needs is actually not a cinch. It’s better you start the journey by making a list of all the features/amenities you expect in your dream home.
Let’s say your goal is to have a spacious home located in the central area of NY with a small backyard. Then, you can either opt for brownstones or townhouses. If you want a cost-effective property with low maintenance, walk-up housing, which is the most common housing in New York, would serve your purpose. You have to figure out things according to your preferences and standard of living.
2. Do you qualify for the Mortgage You Expect?
During the home-buying process, it’s crucial for you to know how much mortgage you qualify for. You may plan to buy a home with a net worth of $450,000. However, the lender may not provide more than $250,000. Why?
The lender will analyze certain factors such as your total income, job security, and outstanding debts prior to assigning you the capital. They’ll directly say no if your debt-to-income ratio depicts that you’ll not be able to afford the mortgage payments. So, it’s a wise step to calculate your credit before applying for a mortgage loan.
3. Do You Have a Trusted Source Who’ll Guide You throughout the Process?
As we mentioned earlier, buying a home can be a daunting task. A trusted source can prove to be a boon for a first-time house buyer because no matter how much groundwork you do, there will always be something where you’ll feel the need of seeking professional help. A real estate agent can provide you with a number of options that match your expectations and are within your reach in terms of the price range. In addition to that, they can also help you get a loan, complete the paperwork legalities, and streamline the process. Therefore, you must contact an experienced real estate agent in NY to make your transition a hassle-free one.
Home Buying Process
Here are the five significant steps that can demystify the entire home-buying procedure.
1. Pick the Right Type of House
Contradictory to the common mindset, there are a plethora of affordable real estate properties for sale in NYC. Make sure to do thorough research on such properties, online as well as by paying a personal visit.
First, check out the houses on the internet by exploring the property listing pages of top real estate companies in NY. This way, you’ll get the description of available houses including their high-quality images.
Once you’re done, choose the top 10 or top 5 houses of your choice and contact the real estate agent for further details. Sort out the best property and move on to the next step for fulfilling your desire.
2. Explore Your Secure Financing Options
Assistance programs that offer low down payments and discounted interest rates for first-time buyers are available across different states of NY. Therefore, you must discuss the different types of mortgages with your real estate agent. Investing your time in exploring secure financial options may seem like a mentally draining process but, it will surely pay off in the long run.
3. Make an Offer
Many people get confused during the negotiation and end up frustrated. To avoid such situations, talk turkey to the real estate agent and decide a final price that you can offer for the property. Your real estate agent will then proceed and keep your proposal to the seller.
4. Consider Doing a Home Inspection
Once the seller agrees to your proposal, consider doing a home inspection by personally visiting the house. You can also hire a professional home inspector to save yourself from any kind of pitfalls. If you find something major that needs to be repaired, ask your seller to either do the needful or deduct the price from the final offer. First-Time Home Buyers should be very careful with this.
5. Close the Deal
You’ll need to sign a ton of legal papers while closing the deal. Carefully read the ‘legal jargon papers’; if everything falls into place, go ahead and sign the agreement to seal the deal.
Mistakes to Avoid as First-Time Buyer
Buying a home for the first time is indeed very special. Even the slightest mistake while buying a home can result in failure. To verify the following things first and then take a decision.
1. Looking for Home First and Loan Afterwards
This is the most common mistake that first-time buyers do and regret later. As a first-time home buyer, you need to keep in mind that the property might fall into foreclosure or short sales if you fail to repay the loan within the specified period. So instead of daydreaming about the home, face the practical world by visiting a lender’s office first.
2. Not Paying Attention during Home Inspection
All that glitters is not gold. Therefore, paying undivided attention during the home inspection is necessary. Make sure you access everything including the drainage system, roofing, plumbing, and electrical wiring.
3. Fraudster Alert
Don’t fall into the honey trap of fraud sellers who offer you unbelievable deals. The modus operandi of fraudsters is to take advantage of your ignorance. Stay cautious and understand all the clauses while you sign the agreement. The best way to avoid real estate fraud for First-Time Home Buyers is to seek professional help. It will significantly minimize real estate-related risks.
The Bottom Line
In a nutshell, the more informed you are beforehand, the less stressful you’ll feel during the decision-making process for First-Time Home Buyers. Do follow these tips sincerely and we’re sure you’ll get your dream house in New York soon!