Shopping for a first home can be a mix of excitement and anticipation. Unfortunately, those emotions can cause first-time homebuyers to make mistakes—errors that might cost money and conceal problems with the house. The good news is that with a bit of preparation and by speaking with a certified appraiser, beginners can protect themselves from the unexpected. Here are a few tips to help novices navigate this important real estate transaction.
3 Tips for First-Time Homebuyers
Get Pre-Approved First
Nothing dashes hope faster than finding a beautiful house and discovering later that it’s too expensive. To avoid this scenario, first-time homebuyers should meet with a mortgage lender to get pre-approved. This process will examine the buyer’s income, debt, and expenses to determine how much loan they will qualify for. Certified appraisers strongly recommend knowing this key figure. It will help narrow down the search for the type of homes that are affordable.
Save for a Down Payment
The rule of thumb is to save at least 20% of the total home loan. This amount will typically reduce the monthly mortgage payments. After being pre-approved, shoppers should start saving 20% of the desired loan amount. Open up a savings account and arrange automatic transfers each payday into the account. Set a financial goal of when you would like to have the total amount saved.
Get the Home’s Value Appraised
On the outside, a home can look shiny and welcoming, but what is it really worth? This is when a certified appraiser is a perfect resource. They specialize in the professional evaluation of a house’s value. The experts provide a complete report that includes information on any needed home improvement costs. Certified appraisers also compare the home’s cost to other comparable houses in the neighborhood. Armed with these details, first-time homebuyers can have more room to negotiate on the final price.
Moving into a first home is one of life’s most memorable milestones. If you’re new to the real estate market, let the team at South Eastern Appraisal in Somerset, KY, be your trusted partner. For more than 25 years, the certified appraisers have helped individuals and businesses by providing thorough reports on property values. Call (606) 679-7339 or visit their website for extensive information on real estate appraisal services.