The Five Ps of Buying Real Estate Sandy For First-time Homeowners

Posted by harryjason on November 18th, 2016

Your diligence about these matters related to real estate Sandy will pay off – your first home will not only be beautiful but also meet your needs and wants. Here are the five Ps that you should be aware of as a first-time homeowner.

#1 P - Price

Before looking at homes for sale Power Ranch, for example, you have to set your budget for your first home. You should keep in mind that the listed price isn’t the only thing you have to budget for either. You have to include the closing fees, contingency costs, and legal expenses, among others, which can amount to 10-15 percent of the listed price.

You should take a second look at your budget for this reason. You may have to change your needs and wants in a home to suit your budget.

#2 P – Prioritize

When you’re working within a budget, you will likely have to make compromises in your needs and wants for your first home. You have to look at your priorities in a home, determine the ones you can and cannot live with, and change your budget plans, if necessary.

You can start by creating a checklist of your home-related needs and wants. You will be surprised that you can sacrifice a few wants in order to satisfy most of your needs in a home.

#3 P – Plan for Your Mortgage Options

You will run into more problems with your mortgage options than with other aspects of the home buying process. Your realtor or real estate lawyer can explain your mortgage options in greater detail, especially about interests, monthly payments, and penalties for default.

Be sure to understand the terms and conditions of each mortgage plan. You have to look at the long-term impact of each plan before making your decision.

#4 P – Programs for First-time Homebuyers

The best real estate companies in Scottsdale, among other places, can refer first-time homebuyers to the applicable programs. The perks of being a first-time homebuyer include low down payment and lower interest rate on the loans, even assistance for down payment.

Examples include tax credits and smaller down payments, such as from the Federal Housing Administration (FHA) loan program. You should ask your realtor about them.

#5 P – Pre-approval of Loan

You have to secure pre-approval for a loan before the seller will even make a commitment to sell the property. You will be able to set a budget when you have already been pre-approved for a loan. Your lender, such as a bank, will grant the pre-approval based on your current and future capacity to pay.

With these five Ps in line, you can proceed to other aspects of the home buying process. You and your realtor can discuss about home inspections, deeds of sale, and closing costs, among others.