Manhattan Real Estate Lawyer Shares Tips for First-Time Homebuyers
You’ve spent years saving money and finally the time has come to invest your money in buying your first home. As a first time homebuyer this is an exciting time but with the excitement of buying your first property also comes the reality of taking the right steps to ensure that your transaction goes smoothly.
If you have questions about the real estate closing process or how to best protect yourself when purchasing a property in Manhattan, it is best to consult a knowledgeable Manhattan real estate lawyer who can guide you.
There are also some simple tips that you can follow below:
- Check your credit score:It is important to check your credit score before you start the home buying process to make sure that there is no inaccurate reporting on your credit report and to also have an idea of what type of interest rate you may qualify for based on your credit score. Use the time to clear up any blemishes on your credit report, and to improve your credit score.You can obtain a free credit report once a year from each of the three credit reporting agencies – Experian, Equifax and Trans Union. The higher your score, the better your interest rate on a mortgage will be.
- Avoid any activity that would require a hard inquiry on your credit:Doing so may bring your credit score down, so plan on purchasing that car after your mortgage loan is approved or way ahead of time.
- Determine how much you can actually afford:use a home affordability calculator to determine how much home you can afford prior to searching for your dream property. There is no point in getting your hopes up only to find out later that you cannot afford your dream property.
- Save up for closing costs:You can research closing costs when the time comes, however, usually between 2%-5% of the loan amount will be the investment needed for closing costs.
- Intra family loans:If there is a family member who promised to help you out with your purchase financially, there are important steps you can take to ensure that any money transfers don’t create a roadblock for you as you go down the road to home ownership.
- Request a pre-approval letter:Requesting a pre-approval letter from a lender in advance will set you apart when the time comes to make an offer on a property you love; it gives the seller an indication that you are a serious buyer, and, in the event of a bidding war or just even to ensure that the seller takes your offer seriously it may give you an advantage.
Are you a first time homebuyer who has questions have the real estate closing process? Contact an experienced and savvy Manhattan real estate lawyer who can protect your best interests and ensure that you are well prepared to have a smooth real estate closing.
Contact Sabra Law Group today at (646) 472-7971 today for a confidential real estate consultation.