Buyer Tips - Making a Home Dream Into a Reality

Buying a home can be one of the biggest decisions you make in your life.  We at Queens Realty understand how stressful a time this can be.  Here are a few buyer tips to make your homeowner dreams into a reality:

1. Upfront Costs - Most buyers know about saving up for their down payment, but there are other upfront costs that buyers need to have in addition to their down payment.  These include closing costs and inspection fees (where applicable).
2. Options for Down Payment - Most financial experts recommend that buyers come up with at least 20% of the cost of the home for a down payment.  That can be alot of money.  So, you  may want to explore your options.  If you can qualify for an FHA loan, you only need 3.5% down.  There are government programs that offer down payment assistance as well.  Another option is if you have a relative who would be willing to "gift" you all or part of your down payment.  Make sure to discuss these options with your Real Estate Professional.
3. Run a Credit Check First - Lenders use your credit score to determine whether you are a good risk to lend money to and your likelihood of paying back the loan.  If you credit score is high, you will get a lower interest rate, thus paying less to borrow money to purchase your home and saving you thousands of dollars over the life of the loan.  Everyone is entitled to one free credit report per year from each of the three credit reporting agencies: Experian, Equifax and TransUnion.  Check your credit report for accuracy and make sure to report any errors you find to the appropriate credit reporting agency.  It is important to do this for all three because there may be differing information on each one.  This should be done well in advance of applying for a loan.
4. Get Prequalified - Prequalifying for a loan takes only minutes.  The lender will go over what you make, what your monthly expenses are and determine how much money they would be willing to lend you.  This gives you a general idea of the price range you could afford based on these limited criteria.
5. Get Preapproved - Unlike prequalification, the process to get preapproved can take longer.  The lender will give you a letter of credit stating the maximum they have approved you for on a loan.  Sellers are more apt to work with someone who already has a loan in place.  It also helps make the home buying process proceed quicker.
6. Determine Wants - Decide exactly what you want and must have in a home before you go searching for one to help narrow your focus.  For example, you absolutely must have at least 3 bedrooms but can forgo the 3 car garage if the house fits the rest of your criteria.
7. Determine the Neighborhood You Want to Live In - Where you decide to live can have a big affect on your wallet.  Even different neighborhoods within the same city can cost or save you thousands of dollars on the asking price of a home.  Decide which areas will fit you and your family's needs before you do your home search.  Again, this will help you narrow your focus while searching for that perfect home.
8. Hire a Professional - An experienced Real Estate Professional can help you through the entire home buying experience, from searching for a home to putting your offer in to even helping you hire general contractors or inspectors you may need, making the home buying process easier.
9. Begin Your Home Search - Since approximately 84% of buyers start their home search online, the local MLS is a good place to start.

By following these buyer tips, you can make your home dream into a reality.  Contact Queens Realty to help you with any of your Queens real estate needs.