For a young couple, buying a house is highly likely the very first serious investment. So, you are a newlywed, and you want to have a family nest. It would be best if you had advice and professional assistance to do all right.
In this article, we tried to have all the significant advice for you to avoid any troubles during your first property purchase. Check these seven tips to make the right call.
1. Know your financial situation
The young couple needs to be fair with each other and know their financial situation. Pick up a day to see your both credits reports, check any debts, and other loan payments. It should be no surprises for both of you when you start the buying process. The knowing of the family’s financial situation is vital for your and agent’s understanding of what kind of home you can afford. Plus, it gives the knowledge of whether you can apply for special loan programs and what kind of terms you can expect.
2. Know your score
The high credit score increases your chances for your loan request to be approved. Even if your credit score is low, you still have options. Plus, it is a good start to improve it. You have a right to receive a free financial report made. Do your homework to find what agencies can provide you with free credit reports. Thus you will stay informed about your financial situation.
3. Stick to your budget
For sure, this advice for those buyers who know that they need to put special effort to purchase a house. The secret is to spend less than you earn and save the difference. Also, please get rid of any outstanding debts; otherwise, they will be counted against. Remember, discipline is essential.
Except for down payment and interest rate to be paid down the road, the homebuyers will also cover some hidden expenses. This information should not be a surprise for both of you. Take such payments into account when thinking about the financial side of a deal. Study the list of closing costs, which is quite significant. The closing costs are from 2 to 5% of the house cost. Plus, consider property taxes, insurance, moving costs, home repairs, and utilities.
5. Your real estate agent is your best friend
Remember that if you are buying a house, then real estate agent’s services cost you nothing. It is a seller who pays the commission. So, it is excellent news for just married couple. You not only save money but also receive professional services.
For the most couple, it will be the first massive purchase in their life. It is fine not to know all the process. A real estate agent knows all ins and outs. For example, he will help you with pre-approvement, choosing a house, negotiating the process, house inspection, finalizing the buying. So, believe us you won’t feel lost during the entire process if you have a real estate agent by your side.
6. Be clear
Be clear about what you want. Prioritize what is more vital for you in the future house and neighborhood. It is better to make a written list and communicate with your agent.
7. Loan Programs
It is a tidy sum has to be paid for a house. If you do not have enough, you should know that there are special programs. The states have developed such a process to enable citizens to buy a property.
Search for FHA home loan program, VA Loans, Good Neighbor Next Door, USDA Loans, National Homebuyers Fund. All these loans have their requirements. Check them and see if you can apply. These programs are an excellent opportunity to become a homeowner if your credit score is not big enough.