Home Buying Tips for First Time Buyers

Home buying can be a daunting and stress inducing process. Potential buyers go through a myriad of emotions when even considering a new home. There is a lot you need to know before you purchase a home. So you want to proceed with caution before you make any long term decisions regarding home buying. Here are a few tips that can help make the experience a whole lot better.

Tip #1 Find the right price range

While dreams of having a big home with a pool and spa may be enticing, they may not be very realistic when it comes to the price tag. You need to take a hard look at your personal finances before buying a home. Home prices fluctuate at a constant rate. The real estate market can be very volatile during certain periods. Fluctuating interest rates may affect what you can afford. So realistically look at every dollar you spend and how you spend it. Just because a bank can finance you at a certain rate or amount doesn’t necessarily mean that is how much you can afford.

The first step is to note down how much income you bring home monthly. Then take into account everything you spend your money on. Besides the basics like rent, transportation and utilities, you may have extra bills such as credit card payments, personal loans and education expenses. In addition you need to look at any extras you spend on such as entertainment and shopping. Once you total it all up you can get an idea of what you are able to spend on a monthly home payment.

Tip #2 Obtaining financial pre-approval

Getting a financial pre-approval is very important. You should look at several different lenders before deciding on one. All lenders have different qualifications and can make you various offers. So carefully review each one then obtain your approval. It is better to get your pre-approval before you go out and start trying to negotiate an offer with a home seller. Your pre-approval letter will give you some leverage to work with when it comes to negotiations. Before you get a pre-approval you will need to get pre-qualified first by a lender. This is basically the lender taking a look at your financial status to see what can be done for you.

Read more tips from : Saiban Blog: Home Buying Tips