Valuable Lessons for First-Time Homebuyers

Buying a home can be a particularly stressful, and time-consuming process. Buyers may learn through experience some valuable lessons for buying a home. Here are 5 useful tips for first-time homebuyers to consider when entering the real estate market. 

 

#1 Get your documents in order

To apply for a home mortgage, you will need income and tax documents. Typically, lenders will ask you for 2 recent pay stubs, 2 previous years’ W-2s, tax returns, and the past 2 months of bank statements. Having these documents in hand will save you a lot of time when buying a home.

 

#2 Watch the market 

Stay up-to-date with the housing market on both a national and local level. Just like the stock market, timing is key in the real estate market. If inventory is decreasing, it may be best to buy a home quickly before more buyers enter the market and spark a bidding war. If there are clear signs that the market is unstable in the area, you may want to wait or look for a home in a different city.

 

#3 See if the HOA contract allows renting 

It is common for homeowners to have the long-term goal of renting out the property when they decide to move. It can be a big disappointment to find out after you buy a home that your neighborhood does not permit rentals. Make sure to check the homeowner’s association contract before buying a home if this is your goal. Here in Bozeman, for example, the city has a temporary ban on short-term rental permits in its historic neighborhoods

 

#4 Read the ENTIRE contract

Buying a home will be one of the most important, and obviously expensive, purchase in your life, so don’t overlook or ignore the terms of your contract. If there is anything you don’t understand, ask your mortgage broker and your real estate agent to clearly explain the terms to you.

 

#5 Meet the neighbors

You might forget that you’re not just buying the house, you’re buying the neighbors too. Have you watched the movie Neighbors? Don’t end up like Mac (Seth Rogen) and Kelly (Rose Byrne) and wait until after buying a home to find out that your next-door neighbors are a bunch of college kids who throw wild parties every night.

 

Related Articles: 

Nationwide Housing Shortage

 

5 Steps Toward Buying A Home

 

5 Tips For A Winter Market

 

Hart Real Estate Solutions

www.hart.realtor

406.585.0000

Hart Real Estate Solutions Bozeman Montana


  

 

Comment balloon 3 commentsHart Real Estate Solutions • January 13 2017 04:05PM

Comments

Very important things for byers to know.  We can explain all these to the buyers so they are more confident with their purchase.

Posted by Rose Mary Justice, Synergy Realty Pros (Synergy Realty Pros) 9 months ago

This is great information. Thank you for sharing and best of luck!

Posted by Jeremy K. Frost, Associate Broker, CNE, CRS, ePro, PSA (Keller Williams Realty) 9 months ago

These are very good helpful lessons for first time homebuyers.

Posted by John Pusa, Your All Time Realtor With Exceptional Service (Berkshire Hathaway Home Services Crest) 9 months ago

Participate