It can be a challenging but very exciting time for you who are buying your first home. You can learn from mistakes made by other people and avoid them to have a pleasant transaction.
The following 4 recommendations can help you eliminate the obstacles in the way to make this a successful exercise for you.
1.- First exercise to buy your first home.
The first thing you should do is check your credit score. Credit plays a very important role in granting a mortgage loan. Try to improve your credit to ensure good treatment from the lender, that is, get them to give you the best terms. You can negotiate with the lender when you have a good credit score.
As a reference you can use:
- Excellent: 720-850.
- Good: 690-719.
- Fair: 630-689.
- Location: 300-629.
Effect on loan terms:
- Prime: About 680.
- Almost Prime: Between 620 and 680.
- Sub Prime: Below 620.
2.- Have good reserves.
Buying a home could be one of the largest financial transactions of your life. It involves a lot of money and a long-term commitment , initial, payment of monthly installments, insurance, repairs and property taxes among others. Therefore, “reserves” are very important, saving as much money as possible not only to make the purchase but also to assume future commitments and setbacks that the property presents. Remember the property belongs to the bank until you finish paying the loan.
3.- Obtain prior approval from a lender.
Many people begin their property search without knowing how they are going to structure the financing for the purchase. Many deals in the past have fallen apart because these buyers were unable to obtain mortgage credit for the required amount. It’s wise to get pre-approved by a lender so you know how much money you can get for a home purchase.
4. Hire a professional real estate agent .
Many people, when they decide to buy their first property, think that they do not need to hire the services of a real estate agent, claiming that there is “enough information” on the Internet. The experience of the real estate agent is not only useful for overcoming the possible obstacles of presenting yourself as in any negotiation, helping in the search for the property, negotiating on your behalf with the seller’s agent, but also carrying out the required procedures that, by the way, , are somewhat complex in this part of the world. His experience and professionalism prove to be invaluable to the buyer. And, your commission is paid by the seller!
