(Newswire.net— October 13, 2020) — Buying a new home is always exciting, but it is especially exciting (and stressful) for a first-time homebuyer. While the Coronavirus pandemic has negatively affected nearly every aspect of life, if you have maintained your monthly income and are looking for a new house there may be some good news.
According to a recent article by ABC News, the COVID-19 pandemic has negatively impacted the real estate market conditions and it is unclear when the market will stabilize, which may lead to even lower interest rates. Considering the impact of COVID-19 on the housing market, it could possibly be a good idea to buy soon.
To have the best experience becoming a first-time homebuyer, check out these five things to do first to help you with your financial goals.
1. Look into financing
The first step to buying a new place is to make sure you can afford the mortgage payments as well as the interest payments that come along with getting a personal loan by looking into your home loan options. According to MoneySmart, not only are you going to want to save money for a down payment (generally, 20 percent of the total cost of the loan is recommended for a down payment), but you’re also going to want to start doing research on pricing, look into how much you can afford to borrow, and find the best home loan interest rate. It seems like a lot, I know. Luckily, you can compare home loan rates online and use a mortgage calculator to get the best deal and figure our how much of a monthly payment you can afford.
Whether you’re making a personal home purchase or purchasing an investment property this tool can help you find the best lender to meet your needs, with the lowest interest rate. It will also help you prepare for the monthly payments. Getting the lowest interest rate is probably the most important thing when looking for a mortgage lender, but it’s not the only thing to look for. For example, some home loans have a low interest rate for the first couple of years — but then the interest rate goes up. Or, depending on the type of loan, you can encounter unexpected fees (such as an application fee). Getting the best rate includes all the costs during the life of the loan and using this online tool can make comparing these costs that much easier.
2. Research moving companies.
Let’s be honest — the moving process can be a nightmare. By Googling “local moving companies near me“, you can find a professional moving company to help with the entire move. For example, Muscular Moving Men is the top moving company in Arizona. They specialize in moving, packing, and storage. With years of experience, these professional movers will expertly pack all your belongings, tenderly handle your fragile items and valuables, and bring the muscle necessary to pack bulky items like your couch and other large pieces of furniture.
Moving across state lines? Whether it’s a local move or a long distance move, this moving company will provide everything you need at an affordable cost. Instead of renting a moving truck and doing it yourself, hire the best movers (who come with their own moving truck and supplies such as boxes, dollies, wraps, and more.) to take care of your belongings. Also, if you’re not ready for all your belongings and household goods to come with you to the new place, they offer storage services. To get a moving estimate for your next move fill out a quote form and get a price quote to see if this great service is in your budget.
3. Buy homeowner’s insurance.
According to Investopedia, homeowner’s insurance is a must, considering that your home is likely your biggest investment. Plus, it gives you peace of mind. It’s a good idea to shop around to compare coverage limits, deductibles, and optional coverage (such as flood insurance, collectibles coverage, and more) while keeping your personal needs in mind. This is the only way to ensure that your entire home is in the best shape possible for a long time.
4. Get an appraisal.
The best way to ensure home equity is to get an appraisal. Usually, this is done by unbiased professionals and is required as part of your mortgage application. This is also a good way to know if you will need to invest in any new construction if you become the buyer (that can be a downside for some). This has the potential to get you the best price if the home appraises for less than the seller was trying to charge as well.
Pro tip: keep the COVID-19 pandemic in mind, as there can be different restrictions for different areas. In most cases, the appraisal will be sent to the lender, but you can request a copy to protect yourself as the buyer to ensure you’re getting the best deal.
5. Factor in utilities.
A common thing homebuyers overlook is the fact that utilities such as gas, water, power, electric, and garbage pickup often costs more in a home than they do in apartments. Consider factors that may reduce these costs when looking at homes such as energy-efficient appliances and solar panels.