3 Things Every First-Time Homebuyer Should Know

Today I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period.

Buying your first home can be an incredibly exciting time. However, it requires a huge commitment and a sizable investment. That’s why I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period:

1. Know what you can afford

Your mortgage is only a part of what you will need to pay when you buy a home. Homeownership comes with plenty of other expenses, including closing costs, taxes, property insurance, maintenance costs, and homeowner association fees. 

Once you have a clear idea of how much all of these items will cost, you can compare it to your current monthly expenses. Then you can figure out the kind of home you can honestly afford without getting carried away and without getting bogged down in debt. 

2. Choose your lender wisely

Choosing a lender is not something you should base only on the lowest rate. A competent and trustworthy lender will offer you advice on how to improve your credit and also help you take advantage of special homebuyer programs that might benefit you. 

But how do you find the right lender specifically for you? It's often best to get recommendations from friends who have already worked with a lender or from a real estate agent you trust.

3. Don't overlook the details

There are many details that go into buying a home, and missing any of them can be a costly mistake. I always advise buyers to get a professional inspection done on their home, separate from the appraisal. An inspection will set you back about $500, but it can save you thousands of dollars down the line, and it can even prevent you from making a decision to buy a home that you would later regret. 

"An inspection will cost about $500, but it can save you thousands."

A second example is understanding the fine print in the various contracts you will be signing. If there's anything that isn't clear to you, talk to your real estate agent and have it spelled out.

The process of buying a home can be intimidating, and that's why professional real estate agents are there to help. These three quick tips are only the start of the things you need to watch out for when buying your first home.

If you need more advice or you are ready to start looking for a home, get in touch with me. I love working with first-time homebuyers, and I can help you get your perfect new home with minimum hassle.

Why Should You Get Pre-Qualified?

Jeff Pope from AmCap Mortgage joins me today to explain why it’s important for homebuyers to get pre-qualified.

Today I’m here with Jeff Pope of AmCap Mortgage to discuss the importance of getting pre-qualified before you start looking for homes. 

The pre-qualification letter is a big piece of the home buying puzzle. Going into your home search without a pre-qualification letter is like being at the top of a mountain and speeding down it with no brakes. You might end up OK, but you never know what will happen. 

You need to start the home buying process by getting pre-qualified.

Getting a pre-qualification letter will get you off to the right start. You will know how much you can afford and we can get you into the right house. 

In order to get pre-qualified, you need your tax returns, W2s, and paystubs. Good lenders like Jeff will use secure services so that your information will be protected throughout the pre-qualification process. 

If you have any other questions about the pre-qualification process, you can reach Jeff at 713-502-9355 or jpope@myamcap.com. As always, if you have any other real estate questions, give us a call or send us an email. We would be happy to help you!

What Does It Really Cost to Buy a Home?

What is the true cost of buying a home? In addition to the sales price, there are many other costs and fees that you need to be aware of before you make your purchase. 

When you purchase a home, the sales price is not necessarily the total price of the home. In reality, there are a few extra costs and fees that you need to consider. 1. How much are your property taxes? The amount can fluctuate, but knowing this number will better prepare you. Property taxes have the largest impact on your monthly mortgage payment. 2. What are your utility costs? Gas and electric bills can drastically alter your expenses depending on the season, so make sure you take them into account. 3. What is the cost of furnishing the home? Set aside some extra cash for new furniture or appliances without having to run up your credit. Remember, don’t purchase anything while you are under contract; wait until after you close on the home to get your new furniture.

Don’t buy any furniture until after the close of escrow.

4. How much will your home insurance cost? Home insurance costs vary from agency to agency and will affect your monthly mortgage payment. Make sure that you get a policy with excellent coverage. If you aren’t sure where to get home insurance or you need help furnishing your home, let us know. 

We can refer you to vendors to help you with these different services. Of course, if you have any other real estate questions, please don’t hesitate to reach out to us. We would be happy to help you!