Buying a Plano home can be long, often frightening and complicated and it is important to be prepared for the process. Knowledge gives you power when it is time to negotiate a home price and a mortgage. For the first time home buyer, there are many factors to consider before you write an offer to buy. The more information you have before you start looking for a home the better off you will be.
Look Beyond the List Price
When securing a mortgage for your first home, it is important to look at the true cost of the mortgage, not just the interest rate. Study all of the paperwork, including the fine print, carefully, especially if the interest rate is below other advertised mortgage rates. Upon closer inspection you may find out that the great interest rate you were quoted is guaranteed for only a short period of time or that it contains a pre-payment penalty. Your mortgage may be the most important contract you will ever sign, and it is essential that you understand the terms and conditions before you sign on the dotted line. In most cases it’s a good idea to hire a real estate attorney to review the mortgage documents for you. Many communities provide a first time homebuyer program designed to help renters become homeowners. These organizations may be able to provide the legal guidance you need at a price you can afford.
Every Plano Real Estate Transaction is Unique
Every homebuyer will have a different set of circumstances, and it is important to relay that information to the mortgage company upfront. Some homeowners may plan to move in for a short term like a year or two, and in this case they may be able to benefit from a variable rate mortgage. Other home buyers will plan to remain in their home for decades. These home buyers may benefit from a fixed rate mortgage and that is that has predictable and stable monthly payment.
It is very important for the first time home buyer to factor in all the cost of their mortgage when determining how much they can afford to pay for their first Plano home. Things like closing costs and the high price of mortgage insurance can drive up costs and take away from the funds that would otherwise go towards the home towards home improvements, furnishings and other home essentials. In many cases sellers may be willing to pay some of the closing costs for the buyer and some mortgage companies will be able to negotiate those closing costs lower. The key to an advantageous real estate transaction is to ask those questions well before closing, and be prepared to search for a better deal if necessary.
Anytime a first time buyers enters a Plano real estate transaction they should retain the services of an experienced Plano Realtor. Their Realtor can be on the lookout for any hidden cost and fees fees. These nuisance fees can add up to hundreds, even thousands, of dollars on closing day. Be sure to study your paperwork to find any such fees. If you are unsure about the legitimacy of any charges, ask your Realtor or the closing agent for a thorough explanation. Again, an experienced Realtor can provide valuable insight into which fees are reasonable and which are junk fees. Your Realtor can use the comprehensive Plano MLS system to find sellers who may be willing to cover some of the first time buyers closing cost. Of course any defects in the home should be pointed out to the seller well before the closing date. The costs of necessary repair should be negotiated prior to ratifying the purchase contract. A home is a major investment and it is important to make sure that everything is as agreed to before going to closing and moving in.