If this is your first time buying a new home, congrats! There’s a lot of information out there to prepare you, but it’s hard to know where to start. Here are some of the most important elements that you should focus on:
Understanding The Down Payment
When buying a new home, you’ll need a down payment. However, it’s not as simple as calculating a percentage. Here are some things you should know about down payments:
- There are many mortgages available that require different percentages for the down payment. Consult with your mortgage rep to see which type of mortgage makes the most sense for you.
- A down payment of 20% or more of the purchase price will save you from paying for private mortgage insurance.
- Larger down payments will result in a lower mortgage rate.
- Your down payment goes towards the principal of your loan. So, the more you pay, the less interest you’ll pay over the life of the loan.
Work With a Real Estate Agent You Trust
Your real estate agent will be a significant part of your life while you’re buying a new home. You won’t believe how much you’ll need to communicate and rely on them! Talk to your friends and family or do some research online. However you find a real estate agent, make sure it’s an agent with experience with first-time buyers.
Before you even start looking for a home, you should choose a mortgage lender and get pre-approved. This way, you know what you can afford and what price range you can start your search with.
Hire An Experienced Real Estate Attorney
Arguably the most critical element of any successful real estate transaction is a highly educated and experienced real estate attorney. This is why you should work with Michael Gutman and his experienced team of professionals.
Ready to buy your first home? Give us a call!