Buying a home can be an exciting but overwhelming process, especially if you're doing it for the first time. To help mitigate some of the anxiety, keep reading to discover three great tips that will help you navigate the home buying experience with confidence. Whether you and your significant other are buying a starter home, or you're going at it alone after renting for the past few years, knowing what you're getting into can prevent costly mistakes.
Prepare Your Paperwork
You'll have your fair share of paperwork to complete during the home buying process, but before the process can even begin, you'll need to organize and provide a hefty amount of financial paperwork on your own. Things such as prior W-2's, recent pay stubs and detailed bank statements are all examples of things that your lender will most likely request, and it's often a headache to locate and organize all of the above at the last minute. So before you sit down with a lender, find out exactly what documents they require and when you'll need to hand them over.
Get the Home Inspected
Toward the end of the home buying process, you'll want to have the home you plan to purchase inspected to ensure that it's in good shape. Depending on what state you live in, it may be a bit difficult to locate a reputable home inspector. Many states require inspectors to be licensed, but others do not. If you live in a state where inspectors are not required to have a license, you should check with organizations such as the National Association of Home Inspectors to see if your chosen inspector is a member. Inspectors who are not members are not legally obligated to uphold professional standards, which is something you should keep in mind during the home buying process.
Understand Types of Mortgages
One thing you absolutely must take some time to research is different types of mortgages. Opting for a mortgage that isn't beneficial to your financial situation can have negative repercussions several years into the future. For example, a fixed rate mortgage will help you to budget in the short term, but may cost more in the long term, as the interest rate is generally higher on average than variable rate mortgages. Variable rate mortgages themselves come in a few different varieties, such as standard variable rate and discount mortgages. It pays to shop around to find the best deal, both now and in the future. If you need help with the home buying process, seek the help of professionals such as the Reinvest Consultants.