Solution for First-Time Home Buyers
There are many young Americans who have taken the step to purchase a home, townhouse, or condominium instead of spending their money away on rent every month. Most of these young Americans are in their mid-twenties and are searching for a wise investment option.
These young Americans are fully aware of the fact that they are throwing their money away in the form of rent and can’t receive any tax write-offs. More young adults than ever are more informed about mortgages and the major benefits of owning your own home.
Where to Start?
If you are a first-time home buyer, the first step you should take is getting a pre-qualification letter. When you have a pre-qualification letter it shows a seller that you are serious about purchasing a home right now. A pre-qualification letter will also determine the maximum amount of money you can qualify for before you begin your search for the perfect home.
Keep in mind that once you have made a bid on a property there is nowhere to go but up in the price, you cannot lower the bid. For this reason, it is imperative that you take your time when looking for a home. Never put in a bid for a property until you have thoroughly researched the recent history of home sale prices in that area.
A qualified real estate agent will be able to print out a list of homes that have been sold in the surrounding area in the past 6 months. This will help you make an informed decision on what you should be offering a homeowner for a specific home.
Think Hard before Bidding
It is recommended to start off with a low bid considering it can always be increased. You should also set a limit and if another bid comes in that is higher than your limit, you should really sit down and insure that it is a wise investment for the raised price.
A home buyer really has to experience the buying process before he or she can fully understand the process of bidding and mortgages. Earnest money is held by escrow and is used towards the purchase of a new home. This check doesn't get cashed until their bid has been accepted and are ready to move forward on ownership of the property.
It is wise that before you go searching for your first home you get a pre-qualification letter. You can easily accomplish this online, on the telephone, or at a local bank in as little as ten minutes. Doing this before you look for homes will save you and your real estate agent a lot of time. A pre-qualification letter makes it easier to focus on specific properties that easily fit into your price range.