1. Don’t Get Locked Into a Bidding War
When people are buying their first home it’s easy for them to get emotionally connected, but it’s important to know when to walk away. First-time home buyers especially can get locked into a bidding war between another interested party that can often end far above the home’s market price. Before bidding on any property a buyer should know exactly how much they are willing to spend, and the buyer should always back down if the bidding goes over this amount.
2. Consider Foreclosures and Short Sales
Real estate agents usually don’t like dealing with foreclosures and short sales because they’re very different types of purchases, but for a first-time home buyer it can be the best way to get a great deal. Foreclosures and short sales can take a longer time to process than traditional sales because they require more work, but they’re almost always priced at or below market price. Banks want to move foreclosures quickly, and owners who are short selling their homes usually need to get out of them as soon as they can.
3. Consider Different Lenders
Sometimes the answer isn’t finding a different home, it’s in finding a different lender. Different interest rates and down payment requirements can dramatically affect the amount that you can afford. If you’re confident that your income is going to be stable or even continue to rise, you can consider an NPBS variable rate loan. Variable rate loans allow you to start with a low interest rate, which can enable you to buy a more expensive house for the same amount of money. If this type of loan isn’t for you, you can also look into federal loans solutions. Those who have military service have many other loan options that they should look into with their real estate agent or the VA.
4. Always Consider Many Options
There are a lot of homes out there at a lot of different price points. Buying a home is a huge commitment, so the best way to get a great deal is to look at a lot of different homes. When looking at homes, a home buyer may realize that they don’t need specific features or that they can find a cheaper home and add the things that they truly desire. Seeing a lot of homes opens up a lot of possibilities, which is also why it’s important for a home buyer not to get attached to the first few homes they see.
About the Author: Kathrine Kreger is a freelance writer from Eugene Oregon, and loves to write about anything to do with technology, and feels particularly passionate about health and child development. When she’s not writing, Kathrine can be found jogging with her golden retriever, baking, and hanging out with her sisters.