Making an offer in the Charlotte home you’ve been eyeing?
Home buying is a process you cannot rush, especially if it is your first time.
Owning your first home is a milestone, a sign of adulthood and independence. It means more than paying for a monthly mortgage. It also means being responsible for the property, being a good neighbor and joining community activities.
Before you make an offer for that home for sale in Charlotte that you’ve been regularly checking out, here are some things you need to know and ask yourself as a first time home buyer.
1. “Should I buy or rent?” If you are still hesitating buying a home for the first time, that’s a good sign you are not ready.
Don’t let other people pressure you into buying a home when you could be neck deep in mortgage in a few years. You may like the home and consider buying it, but don’t make an offer unless you are absolutely ready.
2. Plan how you will pay for your home. One of the most challenging things about home buying is the payment, unless you have a huge amount of money hiding in your closet somewhere. Usually, you have to pay a big upfront payment, then pay the rest through a loan, which also does not come easy.
You’ll need a good credit rating and a stable job with a good income. And the expenses do not end there. Aside from the down payment, you also need to pay the closing costs.
Before you even make an offer, decide on how you will pay for the home. If you need more savings for the initial deposit so that you can get a lower monthly mortgage, you should delay home buying for at least another year or two until you have enough saved.
3. Know what government financial programs are available for first time home buyers. You need to gather your resources, and financial programs offered through the FHA are great options if you want to have an affordable home. In most cases, first time buyers don’t have enough money for a down payment.
With an FHA loan, you don’t need a high down payment to qualify. This suggestion will greatly limit your choice of homes, and most likely, you’ll be choosing from homes that don’t even make it to the top three of your wish list. However, if the home is affordable and within your budget, it is a great option.
Now that you’ve determined how to pay for your first real estate property in Charlotte, here are some things you need to know about the home you are planning to buy.
4. Location, location, location. Don’t decide to buy a home based on a certain feature or amenity. Your home’s location matters. While the large vacant lot located next to the home does not bother you now, it may matter a few years later when a commercial building is being built there.
The freeway a few minutes from your home may not bother you during the daytime, but it’s a different story at night when all you want is some peace and quiet. You may settle for a condo in the city, but if you constantly long for open spaces, in the long run, your home may feel stifling and restraining.
5. Study the home’s history. Once you find a home you like and that suits your budget, do some research. Know its market value, how much it sold for in the past, the square footage, its amenities and its weakness.
Learn why the owner is selling it. Check for the home’s days on market (DOM). All this information will come in handy when you are making an offer for the Charlotte property you’ve been dreaming of.
Don’t rush into making an offer. Take your time to think about it. After all, we are talking about one of the largest financial investments you’ll ever make.
Are you planning to buy a home in the near future? Call me, Nancy Braun, at (704) 997-3794. Let me share with you some important new home buyer tips and help you find the best home.