Buying your first home is both exciting and scary! There are many things you may not know as a first time home buyer, so we turned to Real Estate expert Mimi Sadeghi for a list of some things you should know.
1. Do not make large purchases, open credit cards or move money between you accounts up to few months before buying a home. Doing so may jeopardize your credit profile and change your debt-to-income ratio, causing delay or troubles in getting a home loan.
2. Get loan pre-approval from a reliable lender. Pre-approval is different from pre-qualification. You are pre-approved when your lender has received and verified all financial documentations they need for the loan and based on your debt-to-income ratio, they have determined how much they can lend you towards buying a home. Make sure to shop around for the best interest rate possible and look for any hidden costs in the process.
3. Do not waive your rights for home inspection! From the time your offer is accepted you have a period of time to investigate all material facts about the property and discover defects or verify all that is deemed important to you. Inspections to include but not limited to home, roof, pool, termite, well, or even a surveyor to find out where your property lines are. Buying a home is a big decision and you have to know what you are getting.
4. Talk to the neighbors. Neighbors know everything!
5. READ the title report as soon as you receive it and look for any clouds on the title such as easements, claims, encumbrances or unreleased lien about the property. A cloud on the title can be cleared up easily by the title company, but only if you read it and bring it up to their attention! Your realtor is a great resource and will help you go over details of the title report.
6. The best time to buy real estate is when you are emotionally AND financially ready to accept all responsibility for the house you love. Do not try to anticipate the market because no one knows. Things can change as soon as the next morning. When deciding to purchase a home, plan on owning it for at least 3-5 years. With the average home appreciation rate and all the costs involved, you will start seeing the true return on your investment after the 3rd year.
If you are ready to start looking for homes, do so on reliable websites that are directly connected to the MLS. You can start your home search on Mimi’s website mimisadeghi.com by clicking on “Listing Search” tab or text SIRMSADEGHI to 87778 to download her app.