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Helpful Tips for First-Time Home Buyers

newly wed couple in their new home

Buying a house can be an intimidating process, especially for first-timers. After all, it is probably the most expensive investment you’ll ever make. But if you’re prepared, then the whole home buying process becomes a lot easier.

So before you start searching for Huntsville real estate in Utah, it’s better to first read and understand these 5 helpful tips:

  1. Start researching early.
  2. Before you go out to open houses and talk to sellers, you should take the time to get to know the real estate market in your desired living area. This way, you’ll be well-informed about any important decisions you will make in the future. Look up the current trends in the region, how prices fare compared to similar areas, as well as any potential hazards or security issues. You won’t want to regret your decision long after you’ve closed a deal.

  3. Track your finances.
    • Buying your first home is one of the most important choices you’ll ever make, so you need to make sure you have your finances in check. Here’s how:

    • Check your credit score to make sure you qualify for a home loan. A score of 620+ allows you to obtain a conventional loan. Find out your credit score here.
    • Improve your credit score by paying off major debts.
    • Start saving up for a down payment, which can be between 5% and 30% of the property price.
    • Look for a house priced below five times of your yearly income to avoid financial trouble.
  4. Get a mortgage pre-approval.
  5. Approach a bank or a lender to get pre-approval for a loan. It gives you an estimate of how much you can spend on a home. The bank or lender does this by taking a close look at your income, credit score, and debt.
    Getting pre-approved gives you an edge over the competition because it tells the sellers that you’re a serious buyer and financially capable. Pre-approval is free, so there’s no reason for you not to get one.

  6. Find an agent you can rely on.
  7. Once you’re pre-approved, look for an experienced real estate agent. They should operate in the area you want to move to and know all about the community and the market.
    They should be able to handle tough negotiations so you can get the best deal possible. Beyond that, they should also keep you informed and guide you in making important decisions.

  8. Select a loan and close the deal.
  9. Once you have found your ideal home and gotten an offer accepted, it’s time to prepare for closing. For this, you’ll want to return to your mortgage lender and select the right loan based on your priorities. Are low monthly payments more important to you or does a fixed interest sound more manageable? Once you know the kind of loan you prefer, get all of the necessary paperwork done so you can finally call yourself a homeowner.

Are you looking to buy your first home in Huntsville, Utah? Let our expert team at Destination Properties help you find the best one for you. Call us at 801.745.2009 or send us an email at info(at)destinationpropertiesutah(dotted)com to get started.