Tip # 1 - Focus on interest rates
An increase in the interest rate can increase the payment
on your mortgage, but it has a greater impact. The more you plan to borrow; the
interest rate changes will affect your loan, payments and overall purchasing
power. Interest rates can also affect the overall mood of the market. Changes
in either direction can create a feeling of excitement in buyers and sellers
alike.
Tip # 2 - You should be able to make more than just adown payment
At one time, house buyers could reduce payments coming
out of pocket. All others were able to roll the related fees and closing costs
into the mortgage. But these days, lenders want not only the down payment
amount, but also their closing costs to be available in cash. And with some
closing costs being 2.5% more of the loan amount, it can actually have an
effect on how much home you can actually buy.
Tip # 3 - Before you start seriously looking for houses, become pre-qualified
Pre-qualifying a house loan is not a guarantee that you
will be approved, but it is a good place. This is because getting pre-qualified
will give you an idea of how much house you can buy. Also, because your
credit score, debt-to-income ratio, and down payment amount can have an impact
on your interest rate, pre-qualifying will give you the information you need in
the process so that you can improve your chances approve your loan at the best
rate possible.
Tip # 4 - Do your due diligence when choosing an agent and / or lender
Buying
a house requires a lot of research. However, your research should not be
limited to just comparing places and properties. You also need to do your due
diligence when shopping for a real estate agent as well as your lender. When
you are buying your first house, trusting your agent and lender is paramount.
Therefore, ask people you trust for referrals to realtors and lenders. Visit
and talk with everyone before agreeing to use their services.
Tip # 5 - Be Ready to Move
If
you find a house you love, put in an offer and get ready to move because there
are chances that things will move quickly. This is especially important if you
are looking at houses priced in your budget or less. Buyers will jump on these
properties because house prices are going up, they want to leave in a hurry,
and so should you. Good luck!