If you missed taking advantage of the first-time buyer tax credit but are still planning the purchase of their first home, you continue to have a wealth of opportunities in today’s home marketplace. Here are a few smart steps that can save first-time buyers thousands of dollars:
1. Double-Double (Look twice at your credit)
Your credit must be a clean as possible, since you probably will need to get a mortgage to buy a house. Go ahead now acquire copies of your credit report. Make sure the facts are correct, and fix any problems you discover on each report.
2. Short Timers this is not your time!
If you can’t commit to remaining in your new home for at least a 3 to 4 years, then owning is probably not for you, at least not yet. The transaction costs of buying and selling a home may be financed into the home, but you may end up losing money (the bottom line) if you sell any sooner – even in a rising market.
3. Survey Says “points and rate” – hire a professional mortgage company
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. Your mortgage professional should help you out here. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run. Make sure this is all spelled out on a spread sheet.
4. There is not a home “Lemon Law” – Hire a home inspector
A home inspector can let you know if you’re about to buy a “dud” of a house or warn you about potential problems. At best, you can move into the house confident and with a peace of mind that the home is in great condition. If the report indicates the worst, the inspector’s report can let you terminate the deal. Typically, the home inspection report is used to negotiate the home price to account for necessary repairs that the seller is usually unaware of.
5. Get professional real estate help – Research your agent.
Inside the world wide web, the Internet gives buyers unprecedented access to home listings. Look all you want, but when it’s time to by hire an exclusive buyer agent. They will have your interests at heart and can help you with strategies during the buy to closing process.
6. Make it a Win-Win.
Take this one to heart your purchase should be a win-win for you and the seller. You do not need the stress that comes from running with the Hatfield’s and McCoy’s. You do not need to live with the sellers problems. Yes it may look like a great deal, but it may come with some emotional baggage. Going to the closing table with a win-win seller makes for a great closing.
7. Double Jeopardy – A contract is a contract!
Buying a home is one of the largest purchases most people will make in their lifetime. Avoid buyer’s remorse by being completely comfortable before signing on the dotted line. Take your time. Be patient as the right home will be there for you. And when you see it, make the move.
8. A Penny Saved is a Penny Earned – Buy a Home Warranty
A home warranty is designed to bring you “Peace of Mind.” A home warranty is risk management providing coverage on the primary structure, major systems and appliances. There are a number of firms that offer coverage. Compare, research and buy. Make sure you read the fine print and understand the process. A home warranty can save your budget for pennies a day.
. . . performs the Nation’s Best Home Inspection and provides the Nation’s Only “No Denied Claims Warranty” available in the industry. For the last 18 years, Advantage Inspection has been the deciding factor for the people we serve: Buyers, Sellers, Real Estate Agents and Home Inspectors. Advantage Inspection Raleigh serves Raleigh, Durham and the Triangle area.
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