The real estate market has seen some challenging times since the housing bubble burst, but that doesn't mean you can't find success when it comes to buying a home. With the right preparation and understanding of the process, you can make the experience of buying a home stress-free and even fun!
To get started, consider taking a course in home buying offered by many local real estate offices. These classes are a great way to learn all that you need to know about the process from start to finish. Furthermore, research the area you're interested in to find the neighborhoods that you would be most comfortable in. Take note of crime statistics, school quality, and the area's walking score. If you have an agent, let them know the type of area that you're looking for and they can help you find the perfect fit.
It's also important to know your credit score when you're interested in buying a home. Make sure to keep an eye on your credit report to ensure that everything is accurate and up to date. Even the smallest mistake can affect your credit score and you don't want to be turned down for a loan because of it. Additionally, you may be asked for a larger down payment if you're buying a home after a previous home has foreclosed. In many cases, this is usually around 20%. The larger the down payment, the lower the interest rate you'll likely receive.
When you're ready to apply for a mortgage, there are a few things to keep in mind. Your debt, credit history, the type of mortgage you choose, and the current interest rates will all play an important role in the amount of money a lender will give you to purchase a home. It's also important to consider how far away your family will be when looking at neighborhoods, especially if you have children. Having family members located nearby can be a great benefit both emotionally and financially.
Finally, look for an existing house when you're ready to buy. While new construction is down, the builder still needs to make a profit which will limit how much they can negotiate the price. Someone reselling a home may have much more room to dicker and you'll be able to save money in the process. Home prices have fallen tremendously and the interest rates on mortgages are at historically low levels, so now is the time to find the home of your dreams at a great price!