Buying a home is an exciting and rewarding experience. It’s also a journey that requires a lot of thoughtful research.
There are many things to consider including mortgage, neighborhood and home insurance. The home buying process may even seem overwhelming at times.
These 15 tips will make the process easier for you. Following them will also ensure that you make the best well-informed decision.
1. Create A Checklist
A checklist is a great way to keep track of what needs to be done. It is also highly motivating to check-off what was completed.
Most importantly, it makes sure that nothing is missed or overlooked in the process.
2. Know Your Credit Score
The last thing that a home shopper wants is to be surprised when they are getting a mortgage. So knowing your credit score is important.
It’s also important that the credit score is the same one that the lender sees. For example, some people base their credit by online tools such as Credit Karma.
However, many Orlando FL real estate lenders use FICO score to determine a borrower’s score. The one credit score that the lender uses is the one that matters so that’s that is important.
3. Understand What Debt-To-Income-Ratio Is
This ratio divides all your monthly debts by your gross annual income. Basically, the lower the debt-to-income-ratio the better your situation is to lenders.
Forty three percent is usually the highest ratio for a qualified mortgage. However, there are exceptions. So make sure you know your ratio before embarking on an Orlando property search.
4. Have A Budget
Making a budget will help you avoid all kinds of complications. Having a realistic budget that includes all expenses including:
- Mortgage
- Insurance
- Property taxes of the new home is crucial
The last thing that new home owners want is to live in a home that they can’t afford. If there are future expenses it’s also wise to factor in those expenses whether it’s schooling or a new car purchase.
5. Save For A Downpayment
It takes time, patience and discipline to save for a downpayment. It may even seem like an impossible task, but with a long-term saving plan it is certainly possible.
A good idea is to put the savings for a downpayment in a separate saving account and to keep it off-limits.
6. Get Pre-Qualified
There are a number of benefits of being pre-qualified. Foremost, you will know the price range of homes that you can afford.
This helps eliminate doubt in terms of whether or not you will get a loan. Sellers also take pre-qualified people more seriously because they know they are ready to make the purchase.
7. Target An Area You Would Like To Buy
Targeting a specific area will lead to a better decision. When a specific area is targeted, you will know the precise value of properties.
You’ll also be more informed on property taxes, schools and other important factors.
8. Choose A Home That Fits Your Needs
A home that is too big for your needs will be costly, and one that is too small will be a problem.
Have foresight, and choose one that is sufficient for your present and future needs.
9. Pick A Real Estate Agent That Understands Your Needs
Picking the right Orlando real estate agents who knows exactly what you need will make home shopping a better experience.
They will not waste time and only show you property listings that meet your criteria.
10. Make sure your Mortgage lender sits with you
When you sit with your mortgage lender have them explain:
- Financing
- Interest Rate
- Payments
- Closing Costs
This is important because the total cost will be different from the home listing for sale price. So make sure that you go through every expense associated with buying a property.
For this specific refer to a checklist to make sure that everything is covered.
11. Hire A Home & Termite Inspector
Professionals know their field, and hiring them to inspect the home is in your best interest. They will give you a detailed report of the condition of the property.
A termite inspector will also inform you if there is an issue.
12. Shop Around For A Home Insurance
Home insurance prices vary significantly from one insurer to the next.
While it can seem tedious and time consuming, you will save money by shopping around for the best possible deal.
13. Ask Your Realtor About Obtaining A Home Warranty
Ask your realtor questions about what a home warranty covers. A home warranty is contract that can cover repairs, heating and cooling systems and even appliances.
A good warranty can be a good investment and inquiring about it is worthwhile.
14. Ask For A Termite Bond
A termite bond is basically a warranty between a home owner and a termite company.
It serves like a maintenance contract and includes inspections, treatment and repairs. Having one should give you peace of mind.
15. If Buying In Florida
Don’t forget to register for homestead tax exemption before March 1st. of the following year after closing. If you qualify, this exemption can save you money so make sure to take advantage of it.
Buying a home requires a lot of information gathering. There are many considerations.
Following these 15 tips for buying a home will make the process easier. It and will also lead to a well-informed home buying decision.
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