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A home purchase is one of the largest investments you will make. The significance is often heightened for first-time buyers who are not exactly sure what to expect from the process. The guide below explains some salient points about buying residential real estate.

A Guide to Buying Your First Home

1. Pre-Approval Means More Than Pre-Qualification  

Pre-qualification and pre-approval are both methods of showing that you can acquire a mortgage. However, pre-qualifying only means that a lender has estimated how much you could borrow.

Pre-approval, on the other hand, offers a committed lender statement of how much you can borrow. When sellers see that you’re pre-approved for a mortgage, they’ll know that you’re a serious and prepared buyer who’s ready to make a deal, which can increase the likelihood of them accepting your bid over others’.

2. Many Programs Help First-Time Purchasers 

There are many programs available to reduce the costs for first-time buyers. FHA loans, for example, are government-insured mortgages that have lower credit history and down payment requirements. There are also many HUD-approved programs that help buyers make down payments.

3. Agents Are Essential

real estateWith a trusted real estate agent by your side, you can have support at every step and save yourself from unnecessary stress. For instance, they will search for properties that fit your preferences, develop smart offers for negotiation, and streamline the closing process.

4. Inspections Shouldn’t Be Ignored

Good staging can make a property look like it’s in excellent condition. However, some expensive problems—such as those affecting the roofing, foundation, electrical system, or plumbing—may be hidden.

A professional home inspection will uncover any of these issues and allow you to renegotiate the deal. For example, you might ask the owner to have repairs performed or to lower the price accordingly. If they refuse, you may reconsider your offer.  

5. Standard Home Insurance Doesn’t Cover All Risks

A standard homeowner’s insurance policy will safeguard you from several property damage expenses—such as those related to fire or theft. However, these plans may not protect you from more specific perils—including floods or earthquakes. If your new property is at a higher risk of these events, talk to an insurance agent about additional coverage.

 

When you’re ready to buy a home in north-central Arkansas or south-central Missouri, turn to Gilbert Realty Co. Closely familiar with the Mountain Home, AR, region, this team of licensed real estate agents will introduce you to a wide range of quality properties on both sides of the Ozarks. Visit the agency online to learn more about these services or view current listings. Call (870) 425-6282 to schedule a convenient consultation with a friendly agent.

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