Purchasing a home for the first time is an exciting experience. However, the excitement can quickly turn to dismay if you aren't prepared for the process. Before embarking on the adventure to buy a house, learn a few key tips to eliminate frustration and streamline the sale.

What To Know Before You Buy a House

1. Know the Full Costs of Ownership

When you buy a house, there are many costs to consider beyond the purchase price. At closing, you'll be expected to pay lenders fees, mortgage points, title insurance fees, and a host of other items related to the purchase. You should budget for these costs. Some lenders will include the fees on top of your loan. However, there are some that you'll need to pay for out-of-pocket. Being aware of these costs beforehand will help you avoid sticker shock at the closing table.

2. Understand Key Real Estate Terms

Real estate terminology can be confusing and can make for a frustrating experience if you don't understand it all. While you don't need to become an expert, you should make sure you understand mortgage terms such as fixed-rate loans, Adjustable Rate Mortgage (ARM), points, and the meaning of Principal Interest Taxes and insurance (PITI). Your real estate agent can be an invaluable resource in helping you understand everything. 

3. Get Pre-Approved

Before shopping for your home, it’s important to get approved for a home loan. To get pre-approved, the lender collects your information, checks your credit and verifies your income. Once the lender completes the paperwork, you will be issued a pre-approval letter that specifies the amount for which you’ve been approved. With that letter, you'll stand a better chance of the seller accepting your offer because you can demonstrate that you’ve already been approved for the loan.

When you buy a house, it’s essential to prepare for the process. Before you set out to purchase a home, call the pros at RE/MAX Real Team Realty of Ashland, KY. They will patiently work with you to locate and negotiate the best deal on the home of your dreams. Call them at  (606) 325-0407 to speak with an agent about your house search. You can also fill out a contact form on their website for an agent to follow-up with you.