Buying a home, especially your first home, can be a fun experience with a touch of confusion and uncertainty. While you are probably excited that you are finally purchasing a place that is officially your own, the entire process is unfamiliar and time-consuming. Chances are this is the biggest purchase you’ve ever made—again, exciting, but intimidating. And with so much information available online, it’s important to find the right information to help lead you down the right path towards home ownership that doesn’t cause stress or frustration.
With these essential tips, as first-time home buyers on Long Island, you will be in a place of informed decision-making, which will make finding your dream home a lot easier.
- 1. Get pre-approved. First and foremost, it is imperative that every home buyer gets pre-approved before he or she begins to look at properties. A formal mortgage pre-approval (NOT a pre-qualification) helps identify any financial or credit issues you may not have been aware of that could affect your eventual closing. And most importantly, a pre-approval identifies you as a strong and qualified buyer, which helps your offer win over others.
- 2. Review your finances and spending habits. You need to know more than just what your budget is when shopping for a home; you also need to know how much money you would be able to spend on upkeep once you become the owner. Taking a closer look at your finances and current spending habits can help you determine what monthly mortgage payments make sense for your budget. Lenders don't factor in many monthly costs, such as auto insurance and repairs, cell phone and cable bills, grocery shopping, etc., so make sure you're comfortable that your after-tax income leaves enough to pay your mortgage.
- 3. Choose a qualified real estate attorney. Any lawyer can do a closing, but your cousin's friend that specializes in environmental law is not the right choice! And don't pick the lawyer that advertises a deeply discounted fee—there's a reason they are charging a lot less!
- 4. Work with an experienced realtor. While you may be tempted to look for a house on your own, consider hiring a qualified Long Island realtor to help you. Their knowledge is invaluable. Rather than having to figure out what neighborhoods are within your price range and what mortgage lender you should use, all you would have to do is turn to your realtor for assistance.
- 5. Verify all the information you receive. By doing so, you can check for accuracy and completeness with your attorney. The last thing you want to happen is uncover any bad surprises later in the process when it could be too late to change.
- 6. Request a written overview of expected closing costs. It’s best to review this information with your attorney to make sure it’s fair and accurate. You can easily do this by contacting your lender.
- 7. Don't try to hide any negative information from your lender. It will all come out at some point; usually right before the closing. It’s best to just be honest from the beginning. Fabricating or exaggerating information on your pre-approval application, for instance, is not a good way to start things off with your lender.
- 8. Don't take on any new debt or alter your usual credit practices. That furniture sale can wait until after you close on your new home!
- 9. Save, save, save! Down payments, closing costs and moving expenses can really add up. Plus, it's important to have a financial cushion, so save as much as possible.
- 10. Work with a reputable mortgage lender. You shouldn’t just be concerned with the real estate attorney and realtor you work with, you should also take the time to consider what mortgage lender is the right one for you. Here are some things to look for in an New Year mortgage lender.
