Alamo City is becoming increasingly popular with homebuyers, but San Antonio is still the most affordable metro area in the state. As home prices continue to rise and the market becomes more competitive, now is a great opportunity for first-time home buyers to start researching what goes into buying a home.
The process can seem overwhelming at first, but with these tips from the experienced agents Real Estate San Antonio, which have helped many first-time buyers successfully get into their first homes, will surely make you feel more confident.
1. Optimize your credit score
As you begin the planning process and start thinking about your finances more seriously, one of the best things you can do is check and improve your credit score. When you apply for a mortgage, lenders not only look at the number but also at the content of your credit report to get a better understanding of your finances as a whole. Be careful what your credit report says, and clarify any problems or incorrect information with the credit bureau.
2. Keep your hopes up
While finances are important, another factor to consider when buying a home is your mindset. Searching for a home on a seller’s market can present challenges, but you don’t face these challenges alone when you have an experienced realtor by your side. Try not to think that buying a home is out of reach or too complicated before using all the resources at your disposal.
3. Get professional advice
That leads straight to the next tip, which is to work with a professional. Just like getting a DIY haircut in your kitchen can be stressful and produce less than desired results, the same is true in real estate. If you want a great haircut, trust the professionals. Doing the same thing with your home search by finding a great agent right away will eliminate a lot of the unknowns and put you on the road to success.
4. Research the market
While you don’t need to be an expert, understanding what the real estate market is like when you’re looking to buy a home will help you avoid being caught off guard by unexpected trends, and it will empower you to find a better way to play the game with your agent.
5. See what programs are available in your state
Many states offer resources to first-time home buyers if you do a little research. Looking at the Texas State Affordable Housing Corporation information can help you understand if you qualify for certain loans or programs that are available to you under the criteria of a first-time homebuyer.
6. Plan for the unexpected
While you may have started saving for your down payment and thinking about how much to spend on a home, making sure you’re prepared for additional expenses is a solid tip. For example, you must have enough for your closing costs, typically 2-5 percent of the loan amount. You should also factor in expenses like moving, furniture, immediate repairs, and anything else you might need to set up your new home.
7. Request a pre-approval letter
When you start home shopping and feel that certain qualities are tugging at your heart, take a moment to step back. You don’t want to spend your time looking at and falling in love with a home that’s actually outside of what you’re licensed to do.
While a pre-qualification letter (a helpful tool to help you gauge what you can afford) is useful, there’s more power in a pre-approval letter. This letter is a much more detailed analysis of what you qualify for and is issued by the lender. While it’s not a guarantee that you’ll necessarily be approved for a particular loan, it’s the best you can do to get a “yes” before fully completing the loan. This also helps your agent serve you best and it means buyers know you mean business.
8. It’s never too early to ask questions
This is new to you and that’s okay. When you first start looking for a home, it is logical that you will have many questions. So, ask away! Your agent will be happy to help you navigate the process clearly.
By asking questions and really listening to the answers, you can expand your knowledge of a situation so you can learn more and ask even better questions that will make your life as a first-time buyer a whole lot easier. The big pro tip, however, is that you don’t have to wait until you start the process to ask questions.
Even if you’re just considering home ownership, you can meet with a mortgage lender to understand where you need to be. Ask yourself questions too. Do you want to live in this area for years to come? The average term of the mortgage is 30 years. Are you planning to start a family? You should keep an eye on the schools.
When you’re ready to move, use the free search tool at realtysanantonio.com.