Showing posts with label interest rate on property. Show all posts
Showing posts with label interest rate on property. Show all posts

Saturday, April 25, 2020

5 Tips for First Time House buyers


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!

 

SUGANTA REALTY SERVICES LLP