Need Help Buying a Home? Use These 3 Best Kept Secrets
Do you need help buying a home? Many first-time buyers struggle with the real estate process. It can be confusing and misleading. If you are a millennial buyer, most likely the last time your parents bought a home was years ago. This makes it difficult to turn to them for advice because the process is very different than it used to be. There are more factors to consider.
Home values have gone up over the last several years while interest rates have gone down. Back in the day, it was not uncommon for people to get a mortgage with an interest rate of 10%. Now, interest rates are at some of their lowest rates ever. Depending on your credit score and a few other factors, it would not be uncommon to find that you can get a mortgage with a 4% interest rate. But it is important to remember that interest rates can change daily.
Here are our 3 Best Kept Secrets if you Need Help Buying a Home
Shop Around for a Mortgage
If you need a mortgage, it is important to shop around. Sites like Rocket Mortgage may be able to get you the fastest mortgage but is it the best rate? Remember, a mortgage is typically for 15-30 years. Just a quarter of a percentage can be the difference of a few hundred, if not thousands of dollars.
As you shop around, it is best to find out what you will be approved for. This is called a pre-approval. Remember, you will often be pre-approved for an amount far greater than what you should be spending on a mortgage. It is important when buying a home that you don’t outspend your means or put yourself in a situation that causes you to become house-poor.
A Home is a Financial Purchase, Don’t Get Emotional
When you buy your first house, it is important to remember, you will probably not be there forever. Look at the purchase as a financial investment. This will be the nest egg that allows you to buy your next home down the line which may or may not be your forever home.
We have seen so many people make emotional decisions because they fall in love with a property. This can cause you to overlook flaws that can cost you big time down the line.
Choose an Independent Real Estate Agent
Selecting a real estate agent is one of the biggest decisions you should make at the beginning of your house hunting process. The key is choosing the right one for your needs.
If you are a first-time home buyer that needs help buying a home, an independent real estate agent is the way to go. This is because they are not tied to any specific big box agency. Meaning, they are less likely to show their own homes for sale if they do not fit your budget. The agent is not necessarily looking for a double commission like some others. They are more concerned about turning you into a repeat client. This is why they offer top of the line service and advice. What buyers find is that they can see homes from all different agencies and find the one that is right for them.
If you need help buying a home, turning to the people you trust is a great way to start. But it is not the only resource you should use. Talk to your local bank or reach out to a local independent real estate agent to learn more about the market you are buying into. The internet can only go so far because real estate changes daily. This does not have to be a process you go at alone.