Whether it’s your first or you’re upsizing for a growing family, purchasing a new home is a big decision. Essential is here to help and happy to guide you through the process.
Before you get started, consider these 8 tips:
- Get pre-approved from a financial lender. These are often provided as a free service and meeting with a financial lender early can help you be prepared for the home buying process.
- Review your budget and realistically determine your price range for a house.
- Be sure to shop for low interest rates and inquire about the loan fees associated with obtaining a home loan.
- Know the types of loans offered and which ones best suit you and the type of house you are looking for.
- Know what Private Mortgage Insurance (PMI) is and if you’ll be required to have it. You will have PMI included in your mortgage unless you can put a down payment of 20% of home’s original cost or until you pay 20% of the principle of the home’s original cost. This is also an added cost on top of the cost of the house itself.
- Before signing a purchase agreement, be sure to check the cost of insurance. If the house will require flood insurance, it could increase your mortgage significantly. You should also be aware of the property taxes required on the house, as this is an annual cost of being a homeowner.
- Be aware of the estimated closing costs. They can be shockingly high and you can often request that the seller of the home be responsible for some, if not all, of the closing costs.
- Get a thorough inspection so you’re aware of any issues with the house that may cause unexpected costs in the near future.
Finally, remember to breathe and enjoy the process. When it’s all done, you’ll be a happy new homeowner!