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For a first-time homebuyer, a home purchase is the largest purchase they have ever made.
When you’re trying to purchase property in normal times the process of home-buying can be overwhelming and stressful, and now during the current situation, amid the pandemic, it can add even more uncertainty and stress.
Even with quarantines and social distancing, the real estate market hasn’t slowed down at all, the home prices are going up.
The average sales price of a home in the third quarter of 2020 was $324,900 around the same time last year the average sales price was $318,400 according to the Federal Reserve.
Potential buyers are attracted to the market by low mortgage rates. We predict that this trend may continue in 2021 as well.
If you understand the home buying process, it helps reducing stress while house hunting. So here are some tips for first-time homebuyers:
- Determine how much can you afford to spend on the purchase of a home. So you can know the size of the mortgage for which you qualify, consider your budget, and other additional charges, fees, or purchases that you may need to make.
- Get pre-approved and compare the rates offered by multiple mortgage lenders. The preapproval letter will help set your home offers ahead. Your credit score, credit history, and income will determine how much you can borrow.
- When shopping for the perfect home also consider flexibility. Know how many bedrooms and which area are you having in mind, do a virtual tour of the house, drive through the neighborhood to get a feel for the area.
- Don’t try to save when it comes to home inspection. It is very important to discover any faults like water damage, structural issues, damaged electrical systems, plumbing concerns, roofing concerns, and pest issues which are safety concerns in the property. Try to attend the inspection and ask questions.
- Keep up with deadlines to move the sales process. Submit all your documents on time so you do not delay from your end.
Do not make expensive purchases until you close on your home. It’s very important to know that after submitting your loan application, you don’t charge anything on your credit cards.
As any financial change could delay or hamper the loan approval.
