Buying your first real estate property is an exciting proposition. For many people, buying a home is the goal they’ve been working towards for much of their adult lives. It’s the culmination of the work they’ve put in for several years. To say that your first real estate purchase is a monumental transaction would not be an understatement. Considering the capital you’re putting at stake, it’s also a decision you cannot afford to get wrong.
How can you guarantee that your first foray into the real estate market will be successful? Following the tips detailed below should help you get on the right track.
Entering the Real Estate Market Without a Realtor
With the advent of the internet and the increased availability of high-quality information online, more and more people are taking the DIY approach to important endeavors. Whether completing house repairs or tuning up the family car, more people believe they can easily handle those activities because of available online resources. That same attitude has seeped into the home-buying habits of many people.
Although it’s undeniable that the abundance of information online has allowed more buyers to grasp the real estate game properly, their understanding remains limited. Extensive research cannot help you make connections with the right people. You can also miss out on great deals because some sellers may not necessarily rely on the internet as much.
You still need to work with realtors like Claudette Schwartz to get the best deals on available properties. They can also lead you to properties that may not be visible online. An experienced realtor can also help you avoid critical mistakes typically born from strong emotions. Lean on their experience to ensure you remain level-headed throughout the buying process.
Failing to Obtain a Pre-approval Letter
The buyer’s market for prime real estate properties is highly competitive. You need every edge available to put forth the best offer. To claim that advantage, you must obtain a pre-approval letter.
A pre-approval letter serves as notice that a lender is willing to back your offer. Now that you have a pre-approval letter, a seller is more likely to take your offer seriously. They may even decide to negotiate with you exclusively because they know you have already gone through the pre-approval process.
Just remember to show the pre-approval letter to the seller as soon as possible. Those letters often come with short expiration deadlines. According to the Consumer Financial Protection Bureau, deadlines for pre-approval letters often range from 30 to 60 days. Use them immediately so the seller can respond accordingly.
Not Using Buyer-Friendly Loans
Finally, you shouldn’t assume that securing a conventional loan is the only way to pay for your desired home. Remember that the government also offers housing loans to prospective buyers. These government loans even come with more buyer-friendly terms.
USDA (United States Department of Agriculture) and VA (Veterans Affairs) loans typically don’t require down payments. Meanwhile, FHA (Federal Housing Administration) loans pair low down payments with favorable interests. FHA loans are also available to buyers without stellar credit scores.
