Buying your 1st home is one of the most important decisions a person can make in their life. Here a few important tips that you may want to may want to consider before taking that leap of becoming a 1st time home buyers in Baltimore.
How Much Can You Afford?
Before you go out and start driving around looking at homes, calling realtors, and going to open houses you need to have an idea of how much you can afford to spend on a new home. We know how tempting it is to start looking at houses and getting excited about picking out your dream home however taking a look at your finances is the best place to start. You don’t want to fall in the trap of looking around and possibly falling in love with a home that is not in your budget. Its not uncommon for home buyers to get emotionally attached to a home which is way we suggest taking a look at those numbers is crucial before looking for a house.
If necessary you may want to consult with a financial planner for guidance on how much you should be saving for your first home and how much you can afford monthly. Also, if you are concerned about your credit speaking with a financial planner or reaching out to a credit repair program is something you should also consider.
Ok once you know your budget you should check comps in the area that you want to live. Being a 1st time home buyers in Baltimore you are going to want to check and see how much homes have sold for in your designated area. Checking for how much houses are sold is helpful because it gives you an idea of what you can get that fits into your budget. It also helps with negotiating once you do find a home that you are interested in buying. A realtor will be able to help you with this part but, it doesn’t hurt to have to some knowledge of the comps yourself. Their are several free sites where you can see how much houses are being sold for and on sale for here a few:
These sites also provide additional information such as information about your desired neighborhoods,schools, and other important information on each house listed.
In the current market many deals fall apart because 1st time home buyers in Baltimore cannot find a bank that will not finance them. By getting pre-approved for a mortgage you can avoid this pitfall. The best place to start is by speaking with 3 or 4 different types of lenders such as a national bank, mortgage brokers, regional banks, and credit unions. After, you speak to the lenders compare each lenders estimated rates and payments. Some lenders may charge for pre-approvals so make sure you asks if there are any costs involved when requesting a pre-approval. To start the bank will need the specifics of you credit history, income, and assets. Then the bank will verify everything and send you letter explaining how much you are approved for.
Pre-Approvals are good for 60-90 days so, if you don’t find a home within that time frame you may have to reapply. Please also understand that just because you are approved for a certain amount doesn’t mean you should or have to take the entire loan. Its crucial as a home buyers in Baltimore that you keep your budget in mind.
Get A Home Inspector:
Please don’t skip this getting a home inspector can possibly save you thousands of dollars. Look for an inspector with experience and ask for referrals you are going to want a home inspector that is thorough.
Make sure you ask questions and interview the inspector so you don’t waste your money or time. Having a home inspector can be a huge benefit they may find issues or things that need to be repaired that you or your agent may not have seen or known to look for.
Pick An Agent:
As we all know there are plenty of agents out there that are willing and eager to help you find a home. However, you want to pick an agent that who is really willing to work hard to get you the best deal possible. You can do this by seeing if an agent has any additional training such as a CRS (Certified Residential Specialist), ABR (Accredited Buyers Rep), and or SRS (Senior Real Estate Specialist). You also may want to see how long they have been in business for, check out their current listings, and also asks questions about your desired area to see if they are knowledgable about it.
As a 1st time home buyers in Baltimore this is going to be an exciting and wonderful time in your life. I hope these tips help you in your process. Please post below any questions or questions.