What First Time Home Buyers Should Expect

If you are buying a home for the first time, then you need to know what to expect. If you do not, then you could be taken by surprise and your transaction could fall through. There are some points that you need to know which will help you anticipate what will happen.

The Deposit You Need

No first time home buyer is going to get a 100% mortgage, and this means that you are going to need to put down an initial deposit. The initial deposit will be between 5 to 20% of the cost of the home you are looking to buy. The higher the deposit you have, the lower your monthly mortgage repayments are going to be and the more likely you are to be approved for the loan.

Getting Your Mortgage

When you look at mortgage options, you need to find a reputable broker as they have access to more mortgage deals than you. It is important that you find a broker that is not affiliated with a lender because the ones affiliated to lenders are going to be offering that lenders products only. A good unaffiliated broker will be able to help you determine the type of mortgage that you should get and which lender you should choose.

The type of mortgage that you get is very important because it affects the repayments you make each month. There are two primary types of mortgages available, and they are fixed rate and variable rate. The fixed rate will have a single interest rate for the entire term of the loan while a variable rate mortgage will have a changing interest rate depending on the market. When you have a variable rate mortgage, you may need to make a higher repayment from one month to the next.

Budget For All The Costs

The full costs of buying a home are where first time buyers are caught out. When you buy a home you are not only going to be liable for the mortgage but some other fees as well. These fees will include the mortgage arrangement and valuation fees, the fees for the lawyers, the costs of the property survey and any land transaction taxes in your area.

You will also need to consider monthly fees that you will face once you own the property. You will need to have building insurance, and if you are looking to rent the property out, then you also need landlords insurance. Some areas also have rates and taxes that you need to pay either monthly or annually.

Looking For A Property

Most first time home buyers believe that looking for a property is the easy part. While it is considered easier than securing financing, there are certain points that you need to consider. The primary point to consider is whether you are buying a freehold or a leasehold property.

A freehold property is the one that you want to buy because this means that you own the property and the land the property is on. A leasehold property is different because you are buying the property and land for a set amount of time from the freehold owner. Not all areas have leasehold properties, but it is important that you understand that this is something you have to look into.

There are some points that first time home buyers should expect. You need to know about the deposit you have to have as well as the type of mortgage that you should get. All of the costs of buying and owning a home also need to be taken into account before you start the process.

Top Benefits Of Hiring A Buyer’s Agent

If you have not been able to find a house that is to your liking, or if you miss out on several of the ones that come out, you could find yourself in a situation where you will not be able to get a home in time. You might be moving to a different city, and despite your best efforts, you are simply not able to get your offer in on time. That’s why working with a buyer’s agent might be exactly what you need to do because they can do all of this work for you. They will make it possible for you to get an excellent deal on a house that will be large enough, a price you can afford, doing this on autopilot for all of their clients. Here are some of the top benefits associated with hiring a buyer’s agent if you need to have someone help you get a home in a city that you are moving to shortly.

Benefits Of Hiring Buyer’s Agents

The first benefit to using one of these professionals is that they already have access to all of the listings. They will know when properties come up for sale, and when these alerts come through, they can submit an offer on them. If they are working with individuals that have a specific price point, or if they would like to purchase a home in a specific area of the country, they can monitor the different listings that come out and place the offers right away. The second benefit is that they can do this at a rapid pace, far faster than someone else would be able to because they will see the home, and immediately place the offer.

How Do You Find Buyer’s Agents

The easiest way to find these professionals is to search for buyer’s agents on the web. You need to start searching as early as possible. Although they can take on many clients, you also want to consider how competent they are about providing this type of service. If there is some way of finding testimonials on these professionals, you will be able to choose one based on their past performance. If customers have been happy with their services and were able to get the exact home that they were looking for, this is something that you should consider doing. Starting a few weeks out will probably be good enough, but you might want to start earlier than that. You never know who is going to be available, and once you have found a professional that can help you, you will want to get them started as soon as possible.

How Much Will It Cost You?

The cost of this service is likely going to be very minimal. You may be using a real estate agent that is going to help you purchase your property. They will simply add on a small fee, and if they can help you get this done in the next few weeks, you could be moving into your house shortly. Just make sure that you are provided them with the information that they need to purchase the right home. Be certain that they are looking in the right areas. All of this can be presented to them, and in no time at all, they will be able to purchase a home for you.

Now that you have a basic idea of why it is beneficial to hire a buyer’s agent, you can start looking for one right away. You will likely find several in the major cities, and there will also be those in small communities that will also be able to help. Your research should lead you to one of the more competent ones that have a track record of success. Start searching today, and you will quickly have a home that you can move into in whatever city you are going to be moving to shortly.