Market leader published an article a little while ago that discusses first-time home buyer tips. They based these ideas on a survey taken that included over 400 real estate professionals. We included their info-graphic in our article as most first time buyers are renters that have once used our rental application platform.
Other first-time home buying tips
A handful of other tips you should consider if you are a renter looking to make a purchase:
- Check your credit – even before going to get a mortgage preapproval it’s critical you go check your credit score. A score below 730 may negatively impact the rate you get with a bank.
- Explore your mortgage options – when most people think of a mortgage they think of a 30-year fixed rate mortgage. This could be one of the more expensive options out there. There are other types of mortgages like a 7 year Adjustable Rate Mortgage (ARM). If you are a first-time home buyer and do not expect to stay in the apartment for more than 5-7 years you may want to consider an ARM. This will allow you monthly payments to be lower and may ultimately allow you to make a larger purchase.
- Review Comparable Sales – It’s critical that your real estate agent provide you with comparable sales. This will allow you to submit an offer that’s based more on what the property is worth vs. the sellers aspirational pricing.
- View the property at least two times – some buyers like to make a purchase on a whim. It’s critical that you view the property twice to check if you missed anything the first time you went to the home.
- Budget for closing cost – most first-time home buyers are not aware of the closing cost associated with a home purchase.