Tips And Recommendations To Help You Start Out Your Home Search
The process to buy a home can be full of preparation, decisions, and also making sure you are ready to get the home financing that you will need. Be sure you follow some good recommendations to keep you focused through the process beginning even before you view the first home for sale. The following information provides you with some help when you are planning to search for, choose, and buy a home.
Understand Down Payment Requirements
During the search for your future home, it is first important that you know how much money you will need to have for your home's down payment. You cannot go into a home purchase unprepared without the required amount of cash, because there are several costs that are going to come up during the selection and purchase. In addition to an earnest money deposit and costs for a home inspection, you are also going to need a down payment for your mortgage financing. Find out early on in the process how much your loan down payment requirement is, which your mortgage lender can give you details about.
When you apply and prequalify for a mortgage, make sure you have the savings or means to pay the required three, five, or twenty percent down payment of your home's mortgage. Understand that the more money you put down, the less you will finance and eventually pay for in loan interest over the time of your mortgage payback. You may want to put twenty percent down on a home, but really only have a three or five percent down payment saved up. For example, a home costing $300,000 will require a three percent down payment of $9,000, and if you put down twenty percent, this will equate to $60,000. So, start saving well before you plan to buy so you can have a substantial down payment for your purchase.
Choose a Target Search Area
Once you have your financing figured out and have been prequalified for your mortgage, you can start shopping for the right home in the right neighborhood. Not all areas are the same in real estate; some are more run-down and others may come at a premium due to their location. Look through neighborhoods in the area you want to buy in so you can get an idea of which areas are promising. You may want an area that has a nearby park, lots of mature trees, or a good community feeling with residents living there who share your same goals.
Consider the location of each neighborhood in relation to your workplace, school, church, and grocery stores to determine which ones are within close proximity. You may find a neighborhood that you prefer best but its location will add twenty minutes to your commute time each morning and evening.
Talk to a real estate agent, such as Annie Ritterbusch - RE/MAX Professionals of Newport, for more information.