The process of buying your first property can be a daunting task to those uninitiated with the whole process. From all of the paperwork involved to simply finding a home that meets you and your family’s needs, there is a lot to consider.
Take a look at these 5 tips from Sheldon Salnick of Chicago Luxury Real Estate to remember when buying your first house.
1. Determining Where You Want to Live
First and usually the most important factor involved with moving is determining where you want to live. Are you going to be in the city or the suburbs? Making this decision first in the process will guide you throughout the entire purchase.
By first choosing the area you want to live in, it will be easier to determine your budget and the type of property you will plan to own.
2. Determining the Type of Property You Need
Depending on the size of your family, your lifestyle or even career, you will have a few different kind of property options open to you.
In rural areas with a large amount of acreage available, you will love the space offered by a farmhouse or multi-story house. Conversely, in an urban neighborhood in New York City or Chicago, a condo or penthouse is going to be your best bet.
3. Determining Your Budget
If you can easily find an answer to the first two tips in this article, you will be able to have a better idea around the budget you will need.
To the experienced homebuyer, it is obvious that property in the city is going to sell at a premium price, while property in the suburbs will be at a much lower price. In the home buying process, you will work with a lender to identify how large of a budget you will have for your new home.
You will need to submit multiple sources of income to document your earnings and best predict the amount of money the lender can give you. A smart lender will also try to lock in your investment at the best interest rate, keeping a close eye on day-to-day interest rate changes.
4. Finding A Qualified Real Estate Agent
In addition to finding a lender to work with, you will need find a qualified real estate agent with a proven track record of sales in the area you are interested in.
A real estate agent will guide you through the process of buying your first home and although most listings are made public online, there are certain real estate listings an agent will have exclusive access to.
How do you find the best real estate agent to work with? Begin your research online and try to find as many positive reviews as possible. If a real estate agent is keen to his or her reputation, they will do a great job of promoting themselves online.
5. Negotiations and Closing
After you have decided where you want to live, the type of property you will own, the budget you will have for a new home and have found a great real estate agent to work with, the next and final step is negotiating things you want from the seller and finally, closing.
Through your real estate agent, you can request the seller fixes certain things in the house, leaves certain things in the house, etc. They are not contractually obligated to anything you request, but it will move both of you closer to closing the deal.
Last but not least, set a closing date and be prepared to spend at least an hour signing all of your closing documents.
Find more tips like these by visiting Sheldon Salnick’s blog at Mr. Chicago Luxury Real Estate.