What Every First Time Homebuyer Needs To Know

By: Gabriel Adams

If you are a first time homebuyer, there are several things you should know. After all, purchasing a home is a major investment, so you want to make sure you have as positive of an experience as possible.

For most people, the home buying experience begins with select a real estate agent. When selecting a real estate agent, make sure he or she is a Realtor and not just an agent. You can easily recognize a Realtor by looking at his or her business card, which will contain the capital letter R with a circle around it. An agent that is a Realtor has taken additional coursework and has agreed to abide by a certain code of ethics that will be beneficial to you, so don't settle for someone that has not taken this extra step.

The next step in the home buying process is to get a good idea of the type of home you are looking for. The more information you can give to your Realtor, the better he or she will be able to narrow down your choices and find a home that will suit your needs.

Once you do find the house that you think you want to purchase, you need to make certain to have the home properly inspected. If you are planning on getting a mortgage loan, the lender will require an appraisal. Keep in mind that an appraisal is not the same as an inspection. Whereas an appraisal helps the lender determine whether or not your home purchase is a smart investment, an inspection will help you find out if there are any problems with the home that need to be addressed before you complete the transaction.

If you do discover that there are problems with the home, these issues should be addressed before you sign any agreements to purchase the home. For example, you might negotiate a lower price for the home because of the problems it has. Or, you may negotiate to complete the purchase only after the current homeowner has remedied the problems.

There are several different types of additional inspections that will need to be completed before you can close on the house. For example, the house will need to pass a termite inspection, a structural inspection, and an inspection of the well and the septic if you do not receive city services. If the home does not pass these inspections, the lender likely will not go through with the loan.

Before the transaction can be finalized, the lender will also require you to get house insurance in place. The house insurance must be in place in order to protect the lender's investment in the event that a disaster should strike. Of course, it keeps you protected as well, so it is certainly worth getting the best homeowner's insurance possible while still staying within your budget.

When you purchase a home with a mortgage loan, you need to be prepared to make the pre-determined payment each month. This payment will include repayment of the loan as well as payment towards your homeowner's insurance and your property taxes. When making your monthly payment, the lender will make sure these additional expenses are paid on time.

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