Thinking about buying a home in the near future? Unless you plan on purchasing and sticking around for at least 5 years then your best bet is to just keep renting because you'll be throwing money away anyhow. Research shows that homeowners who bail early are far more likely to lose money on their home sale vs those who stick it out and get back what they invested in the property through use, value and profit from upgrades.
Fix Credit First
Before you even attempt to buy a home you need to work on your credit. Even someone with a great credit history can encounter some hurdles that slow the progress on home buying and could even lead to denial. You need to take care of outstanding account balances and get accounts current (and keep them that way) for at least a year. Likewise, maintain several lines of credit in good standing to show that you're credit worthy and you take care of your balances.
Get What You Can Afford
We all have that ideal home we'd love to live in, with really great options and amenities but - be reasonable. The homes that we all want would cost a fortune. Your first car likely wasn't the car of your dreams and the first home you buy shouldn't be either. Buy small, within your budget and live within your means. Stay put, fix it up, and make it your own for a while until you're ready for something better.
Dont Sweeat the Deposit
Most people think that you must have a deposit of at least 20% in order to get into a home with financing from a lender. While there are plenty of banks that require that amount, there are also private lending institutions (and public ones) that offer mortgages with deposits as low as 3%. Find out the requirements, compare rates and shop around the best mortgage offer in your area.
Get Help Where You Can
Don't try to navigate the real estate market on your own. There's a lot of information out there so it's easy to get overwhelmed. Real estate agents also have access to the MLS where many homes are listed without getting listed in traditional media. Try to go it alone and you can miss out on a lot of home buying opportunities.
Choose Between Points and Rate
When dealing with a lender and reviewing the information for your mortgage you'll typically be faced with the option of turning over extra points (the interest paid at closing) in exchange for lowering the interest rate of your mortgage. If you're planning on sticking it out (as recommended) then it's typically a good idea to take the points since having a lower interest rate will really benefit you over a long term loan.
Sometimes a few little tips can save you a lot of time and headache. Think and plan carefully when you're getting ready to buy real estate, as even the smallest decisions can adjust how much you pay upfront and how much your home costs you in the end.
Author Resource:
Buying a home is a big step and it's not something you should have to endure alone. Partner with a Washington DC Real Estate agent to help you find the perfect home for you're family. Partner with Washington DC Realtors to get the home you need. Paragon Remodeling - 8000 Towers Crescent Dr - Vienna, VA 22182
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