5 Things Every First-Time Homebuyer Should Know Buying your first time home can be both exciting and nerve wracking. This is why preparation is key. Preparation overall helps the process go a lot smoother. But even if you do all of your homework, there are still some things that you may never know as a first-‐time homebuyer. Read on to find out 5 things that every first-‐time homebuyer should know. Know Your Funding Options Did you know, as a first-‐time homebuyer that loans are not the only option for funding your home. There are government-‐funded grants such as the The American Dream Act, or The HOME Investment Partnership Program, that you will give you money towards the purchase of your home. Grants are great because, unlike a loan, you do not have to pay that money back. Research to find out what special programs exist for first-‐time homebuyers in your state. Shop Around For Discounts Buying a house is a number’s game. In addition to your household budget, you should calculate your mortgage payments. On top of your mortgage payment, you should calculate your property tax and homeowner’s insurance. But don’t stop at simply calculating these numbers. Shop around for the best mortgage rate and home owner’s insurance. Many insurance companies will give you significant discounts if you bundle your home insurance with your auto insurance. Have Your Home Inspected Many people tend to skip out on home inspections because they feel it’s an additional cost, on an already expensive investment. But a home inspection is crucial for peace of mind. A home inspection will safety issues such as carbon dioxide, mold or an unstable foundation. A home inspection will also detect things such as illegal additions, which could dramatically increase the insurance and taxes on your home. Consequently, a home inspection also gives you the opportunity to renegotiate the terms of your contract, saving you money in the long run. Online Real Estate Companies May Save You Money Online real estate companies have grown increasingly more popular because of the amount of discounts, and rebates they offer, in comparison to traditional brick-‐and mortar agencies. One of the top leading online real estate companies, RedFin, offers a rebate of up to 50% for buyers at close of sale. They successfully do this because their agents work on salary, and not commission, thereby eliminating the conflict of issues that some real estate agents have. You May Not Ever See Your Dream Home Real estate brokers aren’t always working for your best interest. Oftentimes, some of the best listings don’t make it to public, but other brokers have snatched them up before the public even gets a chance to see them. Brokers will often tip off their broker friends, if they see a listing that a client is perfect for. This is why it’s
paramount to have a well-‐seasoned agent. A great broker’s network could be the ticket to your dream home. Buying a home can be a daunting task, but if you do your research and prepare, the rewards of having your own home will far outweigh all of the work it took to get there. So take your time, check your list, be organized, and most importantly, stay informed. The more you know, the better.