Purchasing your first home is liable to facilitate feelings of immense personal satisfaction and persistent stress. Although countless young adults aspire to own homes, going through the homebuying process for the first time can prove equal parts perplexing, exhausting and frustrating. While there's no denying that buying your first home can prove tricky in a number of areas, there are numerous steps you can take towards making the process less stressful. First-time home buyers looking to give themselves a break can benefit from the following tips.
Increase Your Chances of Home Loan Approval
While there are certainly some exceptions to the rule, the vast majority of U.S. homeowners are unable to afford their respective residences without home loans. So, in the absence of a good mortgage, you're likely to find your dreams of homeownership dashed. That being the case, you should start taking measures to increase your chances of home loan approval.
For starters, take care to pay down any existing credit card debt. Unsurprisingly, mortgage lenders generally aren't keen on approving loans for applicants who are sitting atop a mountain of outstanding debt. Should you find yourself unable to pay off your credit card debt in its entirety, pay off as much of it as you possibly can before proceeding to apply for a home loan. Furthermore, abstain from making any large purchases on credit while your application is under review.
You should also abstain from quitting your job during the application process, as a lack of regular income is liable to give many lenders pause. So, unless your work situation is outright unbearable or abusive, try to stick things out while your application is being considered.
You can also increase your loan options and ensure smaller monthly payments by placing a large down payment on your home. The larger the down payment, the less you can expect to pay each month.
Have the Seller Agree to an Inspection
It's never a wise idea to purchase a home that hasn't been formally inspected. As such, any deal you negotiate should be contingent upon an examination from a certified home inspector. A home inspector can identify and uncover an extensive range of issues, including plumbing, electrical and structural problems. Needless to say, you don't want to move into a home that features issues in any of these areas.
There are a number of reasons for which sellers push back against inspections. In some cases, this is done in an attempt to hide pre-existing problems from potential buyers. Other times, sellers are afraid of inspections revealing problems that even they were unaware of. However, regardless of a seller's rationale for refusing an inspection, you shouldn't indulge them.
In the absence of an inspection, you're essentially rolling the dice when investing in a home. Additionally, inspections can provide buyers with enhanced bargaining power (especially if they reveal issues with the property), which is another reason sellers sometimes express apprehension towards them.
So, if the seller refuses an inspection, you'd do well to walk away. There's certainly a possibility that they aren't trying to conceal problems with the property, but why take that chance with so much money at stake? Furthermore, if they're unable to find a buyer who's willing to purchase the home without an inspection, there's a good chance they'll reinitiate contact.
Familiarize Yourself with Local Real Estate Trends
Before making an offer on a home, make sure to familiarize yourself with local real estate trends. For example, if you notice that similar homes in the area are selling for considerably less than the cost of the one you're considering, make the seller aware of this. Anyone looking to purchase a home in the Tampa area can benefit from brushing up on Tampa, FL real estate trends.
To call your first home an important purchase would be an understatement. Since this purchase represents the culmination of years of hard work, it's only natural that you'd want to be completely satisfied with your new residence. Unfortunately, there are a number of ways homebuyers inadvertently make the process more difficult on themselves. So, in the interest of ensuring that the purchase of your first home goes off without a hitch, put the previously discussed pointers to practical use.
