Top tips to help first-timers navigate the fast-paced housing market

If you’re ready to stop renting and start enjoying the benefits of home ownership, finding the perfect house within your price range can seem daunting, especially in a seller’s market. Keep these things in mind when you are shopping for your first home.

  1. Keep an eye on your credit score

The interest rate of your mortgage matters a great deal. Even a fraction of a percentage can add (or subtract) thousands of dollars over the life of a 30-year loan. One thing that can influence your interest rate is your credit score – it’s just one way for the lender to determine how likely you are to repay the loan. Well before you begin browsing properties online, take steps to get your credit score in the strongest possible position. Review your credit report and report errors immediately. Make on-time payments and put off opening new credit accounts until after the mortgage is finalized.

  1. Work with a full-time, experienced real estate agent

Plenty of online services claim you can save money by completing the process without a real estate agent. But as many buyers discover, the savings don’t always come through as promised. In fact, going through this complex process without professional guidance can lead to costly problems later. If you work with an agent, you’ll get to work with a pro who’s in touch with the local market and can lend a helping hand every step of the way. Their expertise can help you find that perfect house and help you craft the right strategy for your offer.

  1. Play to your strengths

When you find the right house, you may not be the only one making an offer on the property. That can be intimidating. But keep in mind it’s not always about coming in with the highest dollar amount. Buyers have different motivations to sell. Some may be in a situation where they want to close and move out as soon as possible. They’ll be less likely to work with buyers who have their own houses to sell, making first-time buyers more attractive candidates.

Buying a house is a big step, and in the heat of a seller’s market, it takes extra patience and perseverance. Find the right real estate agent to help you through the process, and moving day may arrive sooner than you expected.

3 comments

  • Sharon says:

    It’s been almost a full year that we have been looking for our new home. We have been qualified for a Veterans Loan. We thought since we were already qualified we would find our home really quickly.
    It has been daunting because not only do we have a list of must have ( like a place for our cat to enjoy like some woods) but then you have the strick but very positive guide lines of a VA loan.
    Not to mention our price range of 5o,000 to about 85,000. Also the taxes have to be low.
    So, yes it has been very tough. This is to let people know it takes some patience to buy your perfect home.

  • Gary Puntman says:

    I agree that you should make sure you know what your credit score is before buying a home. That will affect your interest rate and mortgage, like you said. You should also know what you can afford each month to help you establish a budget.

  • It’s great that this article explains how credit scores will affect the interest rate for your loan, so it’s important to get a report and view it before getting a mortgage. Once you’ve done this, it would probably be a good idea to research the various banks and lenders to determine which one to get your mortgage from. You could do this by going online so you can read reviews and check out their website to learn about their reputation and loan services to determine which one would be best to work with.

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