Whether it's your first home or you are purchasing an investment property, there are a variety of things to consider when purchasing real estate for the first time. At times buying real estate may feel overwhelming. There's a lot more to it than just finding the right property for your needs. Things like getting financing and making sure that you are making a good purchase are key. If you are buying real estate for the first time, here are three things that you should be aware of.
Getting Your Finances in Order Can Help
The first thing that you should know is that getting your finances in order ahead of time can be incredibly helpful when you are buying real estate for the first time. One way to do this is to get pre-approval for a mortgage from your desired lender. Getting a mortgage pre-approval is attractive to sellers and also lets you know exactly how much you can afford. This process only takes between one and three days on average. This letter of pre-approval lasts between 60 and 90 days so it's best to go through this process when you plan on purchasing property within this time frame.
What Private Mortgage Insurance Is
One thing that many first-time real estate buyers are surprised by is private mortgage insurance. If you take out a conventional mortgage, private mortgage insurance, or PMI, is a monthly fee that you pay if you have a down payment of less than 20 percent. It's a type of insurance that protects your lender if you stop making payments and it's something you have to pay until you have equity equaling 20 percent in your home. In order to avoid PMI, a down payment of at least 20 percent is a must.
You Need a Home Inspection
If you are buying real estate for the first time, you may be tempted to skip out on the home inspection. However, this can be a big mistake. A home inspection will let you know if there are any potential problems with the property you are interested in. An inspection can keep you from having to make costly repairs in the future or at least allow you to renegotiate in order to account for these issues. On average a home inspection costs between $278 and $390.
Contact a company that offers real estate services near you in order to learn more.Share
1 July 2019
Do you absolutely adore your home, but are planning an upcoming move due to a career change? If you’re moving in the near future, you might desperately desire to sell your current home as soon as possible. To help you accomplish this important task, consider hiring an experienced, real estate agent in your community. This individual can help you select the perfect selling price for your house. Your real estate agent can also provide valuable information about staging your home to perfection. For instance, to make your home more inviting, your real estate agent might suggest you purchase new bedding, window treatments, and artwork. On this blog, I hope you will discover how a real estate agent can help you sell your home fast. Enjoy!