3 Things First-Time Home Buyers Should Know

People holding keys to new home, realtor standing behind.

A first-time home buyer has a lot going on when looking for a Cincinnati property. You want to ensure the house will fit your needs without going over your financial budget. There are 3 things that a home buyer should be aware about when getting a home so you can have a smooth buying process.

Understand Your Costs

When you budget for a home, you mostly consider how much the property is on the fair market and how much of a bid that the seller will accept. Yet there are several other costs that you should budget for along with the home’s asking price. For example, you’ll need to have a down payment for the mortgage. Lenders will require different amounts for the down payment, which will be a percentage of the home’s price.

Other costs to budget for will include the closing costs and the moving expenses. Closing costs go towards finalizing the mortgage agreement, which will also be a percentage of the loan amount — typically from 2% to 5%. Sometimes you can get the seller to agree to paying for a portion of the closing costs.

Don’t forget to save for moving expenses, which will include getting your items to the new home, renovations, upgrades, and furnishing the home.

Research Mortgage Loans

Mortgage loans will have different terms, eligibility requirements, and repayment options based on the lender and the type of loan you desire. Some loans are guaranteed by the government, such as FHA loans, USDA loans, and VA loans while conventional loans are not. A few loans guaranteed by the government also offer lower down payments or no down payments.

You’ll want to look at the interest rates and fees, which can fluctuate depending on the current market conditions, especially right now. Searching for grants may help for you to get a better deal for a home purchase.

Don’t Be Afraid to Negotiate

There is very little that you cannot negotiate with when speaking with the seller. You can try to get a lower asking price, negotiate on closing costs, and try to get the seller to make or pay for repairs. You can also try to negotiate on when you are able to move into the house in case you are making a cross-country trip or need to move in sooner.

Once you have your new home, you want to ensure that it is in sound and stable condition. Consider getting another home inspection after the purchase if the seller made last minute repairs. Also get the home exactly how you want it with some much-needed or optional renovations. When you need roof, siding, gutter, or skylight installations or repairs, don’t hesitate to contact Brandstetter’s KangaRoof.