For people who are buying a house for the first time in their life, this process is difficult. Many questions arise, for example:

  • How do I choose the right real estate agent?
  • Which funding program is preferable?
  • How much money to afford for the first installment?

These and other questions scare the novice buyer. In order not to get lost in the wilds of incomprehensible terms and to get around the pitfalls as much as possible, in this article we will look at the main points that you should pay attention to when buying real estate in the United States. For more info, you can visit our website https://hawaiitrustedrealty.com/property-management. Here you can learn how we work, what we offer and so on.

There is no perfect home

People who are going to buy their first home are imagining the perfect picture and looking for housing that is as similar to it as possible. But life is not a fairy tale, and by magic the house of your dreams will not appear. Especially if there are two of you: after all, the preferences of the other half are also worth considering. There is no such thing that two opinions coincide in everything, so a compromise should be made. The most important thing is to decide on the main parameters:

  • price;
  • house area;
  • the size of the site;
  • district;
  • condition.

Having come to a consensus, you will greatly simplify the search for the coveted housing. When you buy a ready-to-live home with a large plot in a great area, you are most likely setting yourself up for huge mortgage payments every month. Everyone has their own situation, but this is not acceptable for everyone. And this can be avoided.

For example, choosing a prestigious area as a priority, you buy a house that needs renovation, and over time, bring it in line with your taste. In this case, the starting price (and monthly mortgage payments) will be lower. In not the best area, you can find a luxurious new home with a large plot for the same price. Or prefer the middle ground: a medium-sized cottage with pleasant neighbors, where everything suits you. The sooner you come to a compromise, the sooner you can start a productive search for your new home.

What kind of home can you afford

Real estate in America is expensive, and not everyone can afford to pay the full price right away. That is why people are forced to apply to the bank for mortgage lending. In most cases, one of the conditions of the loan is an initial payment (Down Payment), which is 3.5%, 5% or 20% of the initial price. It happens that a down payment is not required, but in most cases it is desirable (or necessary). This is where the question arises: how much can you really afford to pay for a house?

Experts recommend calculating the cost of monthly payments (including mortgages, maintenance, taxes) so that they do not exceed 35% of family income. For example, if your pre-tax salary is $ 5,000, then the final monthly payment is desirable to fit in the amount of $ 1,750.

This is the best option to be guided by. For details, contact your financier for Pre Approval. The bank will review your credit history, credit rating and other factors and let you know how much credit you can expect. After talking with the banker, a lot will become clear to you. You will learn about the financing programs that are right for you. For example, the Federal Housing Administration (FHA) program has slightly lower loan requirements than traditional mortgages. But in each program there are certain conditions that the borrower must meet:

  • salary level;
  • an initial fee;
  • credit score.

Usually, the credit score should be at least 620, but some banks work with clients below 600.

Pre-approval of a mortgage is an added plus when buying a home. The seller, seeing him, understands that you have money and the ability to pay the loan.

Find the right realtor

Shopping in America is very easy. You buy most things yourself: you shop on a website or in a store. Yes, you can check with the seller or read product reviews, but you really don’t need much help.

With houses, shopping is not so easy. Even in order to inspect the cottage from the inside, you will have to contact a realtor. In addition, the agent does a lot of other work:

  • discusses the price with the seller (taking into account the market situation);
  • prepares and prepares the necessary papers;
  • coordinates the process with the participants in the transaction: the seller, inspectors, intermediaries, appraiser, Title & Escrow companies and the bank.

A good agent knows the market well and is well versed in the various districts of the city, increasing your chances of buying a truly worthwhile home.

Finding an agent is not difficult … but finding a good one is a more difficult task. As in any business, there seem to be many specialists, but there are only a few high-level professionals among them. To get started, look at promotional offers in a trade magazine or website, read reviews. Ask relatives and friends about the agents with whom they worked. Before making your final decision, talk to a few of the most suitable candidates:

  • ask how many clients they have helped;
  • ask for recommendations;
  • find out about his work schedule;
  • discuss methods and frequency of contact;
  • specify specific search criteria.

Pay attention to the work of a realtor in the past few months: after all, the market is constantly changing . Remember, an agent is your trusted partner and ally in one of the most important decisions in your life.

Be extremely knowledgeable

Ask as many questions as possible regarding the purchase to your realtor, financier, tax specialist. This will give you a clear understanding of the details of the purchase, your rights and obligations, as well as financial security and tax benefits.

The home buying process involves a large number of participants from both sides of the transaction, as well as time costs. From the beginning of the search to the signing of the contract, it takes from several days to several years. But after the conclusion of the deal, the matter is noticeably accelerated. The paperwork itself (including financing) takes 2-6 weeks, if force majeure does not intervene. And surprises can be expected at every turn :

  • Who pays for the elimination of significant faults identified during the inspection?
  • At whose expense is the inspection itself carried out?
  • How many inspectors should you invite to get a complete and objective assessment of the condition of your home?
  • How to be sure that the price for the house is not overpriced?
  • What happens if the bank refuses to lend?
  • Can I cancel a purchase, and what are the conditions?

By clarifying such questions in advance, you will save yourself from unpleasant experiences in the future.

Conclusion

Each of these points deserves a separate detailed article. We have presented them in abbreviated form just to introduce you to the basic aspects of buying a new home. The main thing is for you to understand that the process may not be so difficult. If professionals work next to you, you will achieve your cherished goal much faster. It is the specialists in their field, who are protecting your interests, who will be able to turn your dream into reality with the least problems.