Buying a dream home is very thrilling as well as stressful! After all, a house is the biggest investment you’ll ever make. That’s why every first-time house buyer has certain things they MUST know, but what are they? When purchasing a property, particularly if it’s your first time, you should have a thorough checklist that includes all the features you want in your new house.
To help you, we’ve compiled the ten best tips for first-time mojo real estate buyers. Just like you, MoJo KC Real Estate Team wants your first home to be a blessing rather than a burden. So, rest assured that these recommendations will help you make that happen. Here we go!
The Best Mojo Real Estate Buyer Tips
- Know how much you can afford.
- Understand your needs and wants.
- Look into mortgage options.
- Get Pre-approved for a Loan.
- Hire an experienced real estate agent.
- Narrow down your real estate dream list.
- Make (or negotiate) an offer.
- Schedule a house inspection.
- Work with your lender to secure final loan approval.
- Close to your new house.
1. Know How Much You Can Afford
Being aware of your budget is one of the most critical aspects of purchasing your first home. Before falling in love with a house you cannot afford, make a financial assessment of your situation. Also, take into account all of your ongoing expenses.
When a lender pre-approves you for a mortgage, it will not consider bills that do not appear on your credit record (e.g., health care, child care, utilities). So, rather than focusing on the whole loan amount or property price, figure out the monthly payment you can easily afford based on your present debts, commitments, and costs.
Here’s a Tip!
Remember to include continuing costs while creating your budget. Consider utilities (gas, water, electricity, cable, and internet). You should also set aside money every year for routine maintenance and repairs.
2. Understand Your Needs and Wants
Face it: while operating on a tight budget, you have to make certain compromises. Knowing what you require will help you limit your house alternatives and make decisions easier when making an offer. Make a checklist of your requirements and desires. Don’t forget to consider items that aren’t part of the house but are significant, such as the area, commute, school system, and even the accessibility to entertainment.
Once you’ve obtained your prioritized list, try taking it with you when you go to look at properties and write down remarks on each place. These lists might help you recall everything you saw and liked — or didn’t like.
3. Look into Mortgage Options
Most people will not be able to pay for their home with cash at the closing table. So, you will most likely need to obtain a loan or mortgage. But what exactly is a mortgage? Well, it’s essentially a loan that utilizes a piece of property, such as your new home, giving the bank the right to seize the home if the borrower fails to fulfill the terms of the loan.
Looking around for a mortgage is also a smart idea. Various banks may be able to offer you various interest rates or conditions. When considering mortgage choices, keep your long-term goals in mind.
4. Get Pre-approved for a Loan
Getting pre-approved for a loan is similar to becoming engaged. You pledge, but there is still a final step to do, such as signing the paperwork. A pre-approval is a letter from a lender that says how much money they are willing to lend you for a mortgage. It’s like a green light for you to start looking at new homes.
If you are one of the 15 million Americans who work for yourself, getting preapproved for a loan will take a little more effort. On the other hand, pre-approval speeds up the process when you find the right home because you’ve already been approved for the loan. It might also convince sellers that you are serious about making an offer.
5. Hire an Experienced Real Estate Agent
Your real estate agent is an expert in the world of house buying, and the appropriate agent may be a huge help when purchasing your first home. They know the market, the prices, and all the rules about buying a house. You could also wish to consult with a realtor. A Realtor is a member of the National Association of Realtors and adheres to their regulations to ensure that you are treated properly.
If you want a team that is professional and knows how to help you find the right home, you should hire the MoJo KC Real Estate Team. They are known for being caring and dedicated to helping you find the perfect home. The MoJo KC team will guide you every step of the way to make your home-buying experience easy and successful.
6. Narrow Down Your Dream List
Work with your MoJo Real Estate Agent to identify what you do (and don’t) want in your first house. This comprises the number of rooms and bathrooms, number of stories, lot size, home type, and other critical parameters.
However, don’t get too caught up on tiny aesthetic issues. Generally, purchasers view their requirements as a pyramid with three points: price, condition, and location. You can’t have a place that’s in great condition in a great location and have it be at a low price. You can only have two at the same time, but you’ll never have three.
7. Make (or negotiate) an Offer
When you’ve found a property you love, it’s time to make an offer. Your mojo real estate agent can assist you in creating an attractive offer. But in the end, you’ll decide how much to offer and what conditions you want to negotiate. How well you can negotiate depends on the market you’re in. If it’s a competitive market where there are a lot of buyers, the seller might have the advantage. If it’s a quieter market, buyers may have more power.
8. Schedule a House Inspection
A house inspection helps you find problems before you buy. You need to hire an expert to check the home’s roof, walls, plumbing, and electricity. Try to be there during the inspection so you can ask questions. The inspector will give you a report that lists any problems. If the house has big issues, you can ask the seller to fix them or lower the price. If the problems are too serious, you might decide not to buy the house. When everything looks good, you can move forward and get final approval for your loan.
9. Work with Your Lender to Secure Final Approval
Before you can buy the house, your bank or lender needs to approve your loan. They will check your money, job, and credit again. The bank will also send an expert to make sure the home is worth the price. If the home is worth less than expected, you might have to ask the seller to lower the price or pay the extra amount yourself.
During this time, don’t buy anything expensive or take out new loans, because that can cause problems. If everything looks good, the lender will give you final approval. You will also get a paper that explains all the costs. Read it carefully so there are no surprises on closing day.
10. Close on Your New House
Closing is the final step before you get the keys. Before this, do a final check to make sure the house is in the same condition as before. On closing day, bring your ID, proof of home insurance, and the money needed for closing costs. At the meeting, you will sign many important papers. After signing, the bank sends money to the seller, and the home becomes yours. Now, you can celebrate because you are officially a homeowner!
Final Thoughts
So, homebuyers, you now know what to do, right? Just follow these tips and stay well-prepared to handle the complicated world of mojo real estate. Remember, getting your first home should be an exciting and satisfying experience. With careful planning, study, and the right support, you’ll soon be opening the door to your dream home.
And if you’re still looking for your new home, why not consider MoJo KC Real Estate? Check out our several finished and ongoing projects with world-class services. Our featured properties all around the Kansas City North will surely surprise you. Don’t wait, connect with us today!
Frequently Asked Questions
What is the best way to buy a house for the first time?
Check your credit, save for a down payment, and get pre-approved. Work with a mojo real estate agent, get a home inspection, and compare loan options.
What age is the best to buy a house?
There’s no perfect age. But when you have a stable income, good credit, and enough savings.
What’s your best advice for first-time homebuyers?
Stick to your budget, get pre-approved, and never skip an inspection. Work with a trusted agent and take your time.
What is the most important thing when buying a house?
Choose the right location, ensure affordability, and get a home inspection. Understand loan terms before signing.