7 Financial Tips for Buying Your First Home
Buying your first home is an exciting life milestone, and especially when you live in a coveted community like Cary, N.C. where there are plenty of options, and a long history of increasing home values.
Your first real estate purchase is an investment as well as an opportunity to have a place of your own to call home, so it’s an important step that provides plenty of benefits and joy along the way.
With that being said, first-time homebuyers in Cary are often unsure what to expect throughout the buying process, (especially when it comes to finances.) So to give you a head start and to amplify your home buying knowledge, consider these financial tips that will help you make the move to happy Cary homeowner in no time at all.
Find out how much you can afford
An experienced buyer’s agent will put you in contact with an equally experienced lender, and can also work with you to determine the optimal price range for your financial situation. Come prepared with a clear overview of your finances – including income, recurring expenses, and any outstanding debts – to ensure that you have an accurate picture of how much home you can afford.
Start saving early
It’s possible to put as little as 3% down on a new home, but the bigger the down payment, the smaller the mortgage payments in the future. (A larger down payment can also be an attractive attribute to Cary sellers as well, as it indicates you’ll be able to close on the property effectively and quickly.)
Explore your options
Though a larger down payment is preferable, it shouldn’t be a roadblock that stops you from buying a home! There are all sorts of home loans available, including conventional mortgages, FHA loans, and VA loans for military veterans, so do your research! Remember that in the years to come, you will have the option to refinance and adjust the terms of your mortgage as needed.
Keep an eye on mortgage rates
So far, 2019 has continually had attractive mortgage rates, but your interest rate is not set in stone. In fact, mortgage interest rates can literally change on a daily basis, so keep an eye on the rates offered by different mortgage companies in order to find the best deal.
Remember that the asking price or “listing price” on a property for sale in Cary is also not set in stone, and you may be able to negotiate to achieve a lower selling price, or to obtain incentives – such as furnishings, appliances, and other items that can potentially be part of the sale. Talk to your buyer’s agent for guidance, and keep an eye out for properties that have been on the real estate market for a long time. As a general rule of thumb, the longer a home has been on the market, the more willing a seller might be to negotiate the price.
If you want to negotiate and / or ensure your offer is accepted, being prepared is key! Ask your lender to give you a pre-approval letter before you make an offer on a home to show the seller that you are ready to buy.
Have the right real estate agent
Above all else, the best thing a first-time homebuyer can do is to partner with the right real estate agent. With a professional partner at your side, you can ensure that you obtain the best deal, have your financial questions answered, and find the perfect Cary residence to call home.