The real estate has rebounded from the declines it had experienced for the past years. Home prices are rising normally and this puts a lot of home owners to great vantage points, knowing that their home equities will also be boosted. For first time home buyers, many are into the thinking that perhaps now is the time to make their dream home purchase just before prices rise too fast to the point that they could no longer realize their dreams. However, as there are many factors that should be considered, a first timer should not be in a rush for the big purchase. Here are the top 3 reasons why.
Because there are many options available.
The mentality that homes for sale will be gone in the market fast is not true at all. There are many homes that will be available for you such as new construction homes, repossessed types, and foreclosures. You can have all the time to shop for the house that will suit your lifestyle, size of your family, and of course your budget. You should not buy the first home you see just because it is beautiful or perhaps the second one just because it has a large swimming pool. Have at least seven homes in your list and visit each one of them at least a couple of times.
Because you should get pre-approved for a housing mortgage first.
Just before you get into a panic, you should remember that you have to avail of a housing loan pre-approval. Most home sellers, particularly well-established developers will require home buyers to present the pre-approval letter from mortgage companies before they roll the processing of other paperwork associated with home buying. And like shopping for the house of your choice, you should also shop around for the housing loan which will give you the lowest interest rates, and flexible payment terms.
Because you should prepare your cash funds too.
Not all part of the home purchase will be relied on the loan. You should also have cash in hand from your savings and salary. And to ensure that you will have a steady source of funds, you should have a stable job. If you have a partner, he or she should also have a stable source of income so it will be easier for you to make the biggest purchase of your life. After all, it is both of your future that will be made comfortable by such decision to buy your first home.