Oct. 21, 2020
Buying a home is likely the largest purchase you will ever make. Whether you are a first time or a seasoned homebuyer, there are important factors to consider when purchasing a home. We've compiled a list of helpful tips to keep your homebuying journey as smooth as possible.
1. Save, Save, Save
If this is your first home you will need to have savings for a down payment. Even if going through a program that allows for a 3% down payment the costs can add up. For example a 3% down payment on a $250,000 home would be $7,500. Seasoned home buyers may be using the proceeds from a home sale or a refinance to purchase, but for both first timers and others there will also be additional closing costs. For example, in NH there is a real estate transfer tax split between buyer and seller. On a $250,000 home the buyer's portion of the tax would be $1,875.
2. Decide on a Budget
Calculate a price range that you are most comfortable with and stick to it.
3. Check your credit
Credit scores affect whether a buyer will qualify for a mortgage as well as what interest rates will be offered. Check your credit score, pay bills promptly, pay down debt and don't close out any credit cards. There are programs available to help potential home buyers strengthen their credit.
4. Get Pre-Approved
A Pre-Approval will help you understand your monthly mortgage payment, as well as real estate tax implications. The tax rates in the towns vary greatly and can impact how much of a home you can afford. Your pre-approval will also allow you to consider the payment within your overall monthly living expenses. Once you are looking at homes, having a pre-approval positions you well to make an offer. Also, many sellers want their property shown only to buyers who are pre-approved, so get this done as soon as possible.
5. Research Mortgage Companies
Comparison shop and take a look at overall fees as well as interest rates. Be sure to consider smaller companies and local banks in your search. Local banks understand the local market and may be able to offer specialized assistance not available through larger companies.
6. Find a Knowledgeable, Experienced Realtor (Team! )
Realtors help buyers navigate the process of purchasing property. This can be a lengthy and sometimes emotional process and having a real estate professional to assist you can make all the difference in your real estate journey.
7. Don't Make Any Sudden Moves
In your finances that is! Any changes to your income or additions to your debt can delay or harm your mortgage application.
- Don't apply for a new credit card or other loan(such as car loan)
- Don't close any accounts
- Don't change jobs or quit your current job until the home purchase is finalized
Buying a home is an exciting adventure, whether it is your first home, a second home or your forever home. The NH Fine Properties Team will be with you every step of the way!