Buying a new home for the first time can be both exciting and overwhelming. Here are seven things to know before buying a new home.
Housing Market Conditions
It is important to understand what a “seller’s market” and “buyer’s market” are. During a seller’s market, there are more buyers than sellers, which can make buying a new home more expensive. During a buyer’s market, buying a new home may be easier and cost less. Knowing the conditions of the real estate market you are entering is important. It can help you understand what’s available, better define your budget and set realistic expectations when buying a new home.
Lending is an important part of buying a new home. During the home lending process, you obtain a loan for your home purchase, which is most commonly referred to as a mortgage loan. With multiple finance options available for mortgage loans, it is important to compare mortgage rates and find a lender. Working with direct mortgage lenders can streamline your lending process and save you money. To better help you navigate the lending process, here are some answers to frequently asked mortgage questions.
When it comes to obtaining financing, your credit history comes into play. Knowing that ahead of time enables you to pay down debt before applying for a mortgage loan, which can help you get a better rate on your new mortgage. Other requirements lenders need to help you secure financing include pay stubs, W-2’s and other proof of income, such as tax returns and bank and mortgage statements.
Not all neighborhoods are created equal, which is clear from real estate prices. Knowing what neighborhoods you are interested in and why is a big help when buying a new home. Do you want to live close to work? Is there a specific school district you like? Whatever the reason, choosing a neighborhood is an important choice. It can most definitely affect the price of a home and the costs associated with owning a home, such as property taxes. Whether browsing online or driving the streets, there are many ways to get to know a neighborhood before purchasing a home there.
Size and Price
Looking at homes above your price range can be an emotional roller coaster. Knowing your budget and looking at homes within that budget, will eliminate any disappointment. Consider your family’s current and future needs when deciding the size and price of a home. Do you have or plan on having kids? Do you want space for an office? The better you understand your family’s needs the easier it will be to decide the size and price of your new home.
The Right Real Estate Agent
Choosing the right real estate agent to represent you when buying a new home can make all the difference. Ask friends and family for referrals, do your homework and consider your options. Partnering with an experienced agent can help you save time and money, whether it be because of their local market knowledge or connections. The right agent may even be able to find a house that has yet to hit the market. Additionally, experienced agents have a knack for seeing things a homebuyer may overlook. This alone could save you years of headaches and countless amounts of money.
Buying a New Home is an Investment
Real estate isn’t just about owning a place to live; it’s an investment. Choosing the right home, in the right neighborhood, on the right street can not only leave you with a great place to raise a family, but it can also ensure your financial future.
Whether you are a first time homebuyer or a real estate investor, working with the right lender can make all the difference. Wyndham Capital Mortgage is a LendingTree-certified direct mortgage lender and we are here for you.