Solution for First Time Home Buyers
Considering the interest rates are at an all-time low, there are many young Americans who have taken the huge step into purchasing a home, townhouse, or condo over throwing their money away in rent every month. The majority 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 aren’t able to receive any tax write offs. It seems more young adults then 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 no where 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.#idx-price-bar#
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 then 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. There are many realtors and home sellers who will hold a $1000 check with the bid proposal as a deposit. Some first time home buyers become skittish when it comes to this because they don’t understand that this money is only to be used towards the purchase of a new home. This check cannot be 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 that 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.