HOT PROPERTY: ASK THE EXPERTS
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10 TIPS FOR FIRST-TIME HOMEBUYERS
Buying
a home for the first time can be exciting. But there are a lot of new processes you’ll experience and people you’ll need to work with, too. Here are 10 first-time homebuyer tips.
1. Identify your needs Areyou willing to travelfarther forwork if it means buying ahome in aspecific neighborhood? Does atownhouseorcondo make moresensethan asingle-familyhome? Take the time to consider your current needs and what your needs maybeinthe future. Having aclear understanding of your housing needs helps youidentify the mostimportant things to look for when viewing homes.
2. Knowthe true cost of your newhome Makesureyou knowwhatyour newhome will reallycost. In addition to your mortgagepayment, youalsoneed to addinproperty taxes and homeowner’s insuranceaswell as the cost of home maintenance, such as taking careof
the lawn, maintaining appliances,unplanned repairs and anyHomeowners Association fees if applicable. Don’tforgetutility costslike electricity,gas,water and sewer.
3. Build your savingsnow Don’twait until you’ve found the houseyou want to buy —start saving now. Building your savingsaccount nowisimportant because thereare manyexpenses you’ll need to payfor throughout the homebuying process,including deposits,home inspections,appraisals, down payments and closing costs.
4. Build your credit wisely When you’re preparing tobuy ahome, you need to be smart with your credit. Lenders use
your credit score as akey factor to determine whether or nottoapproveyou. Theyalso useittodetermine the interestrate and loan terms they’ll approveyou for.
5. Researchyour mortgageloanoptions While manypeople think aconventional loan is their onlyoptionfor buying ahouse, there areothers such as FHA loans and VA loans. Lenders alsooffer fixed-rate and adjustable-rate (ARM) mortgages.Eachoptionhas its pros and cons.
6. Knowwhat youqualify for beforeyou begin shopping You can getprequalifiedfor ahome loan with asimple conversation with your mortgage lender about your income, credit, employment and asset information. Getting prequalified can help narrow your search becauseyou’ll already knowhow much youcan finance.
7. Youdon’t have to do this alone Hiring arealestate agent means youdon’t have to go through the homebuying process alone. Choosing an experienced agent helps ensurethey’ll work in your bestinterest when findinghomes andnegotiating purchasing terms.
8. Makethe decision in your owntime It’sokaytotakeyour time to understand how everything works.Makesureyou’rewell-informed and knowwhatyour options areand carefullythink thingsthrough beforeyou makeany decisions.
9. Youdon’thavetopay the seller’s askingprice Youdon’thave to make an offer for the full asking priceonthe home youwant to buy.Ask your agent to help youmakeacompetitive offer that’swithinyour budget andreflective of the home’svalue.
10.Preparefor closing Oncethe seller accepts your offer,there’s still alot to be done beforeyou close, likethe home appraisal, completing ahome inspection, doing afinal walk-through and completing paperwork related to your loan.
There’salottokeep in mind when buying a home, but it’sall worth it in the end. Knowing what the process involves,and howtohandle whatever comes up,isagreatway to arm yourself for this excitingjourney.
Visit latimes.com/chasemortgage to learn more.
These articles are foreducational purposes only and provide generalmortgageinformation.Products, services, processesand lending criteria describedinthesearticles may differ from those available through JPMorgan ChaseBank N.A. or anyofits affiliates. Formore information onavailable products and services,and to discuss your options, please contact aChase Home Lending Advisor.
All home lendingproducts are subject to credit and property approval. Rates, program terms and conditions aresubject to change without notice. Not all products are available in all states or for all amounts. Other restrictions and limitations apply. Home lendingproducts offered by JPMorganChase Bank, N.A. ©2021 JPMorgan Chase &Co.
