If you are a first time home buyer, the process of finding the right place and negotiating the ins and outs of the process can be daunting. Here’s a quick guide concerning what you need to know before looking at homes for sale in Rockport Texas and taking the plunge.
Determine Whether You’re Ready to Buy
Buying is more costly than renting for a number of reasons, so decide if you’re ready for the following:
- Covering all repairs and handling maintenance
- Paying taxes and homeowner insurance fees
- Handling all utility costs
- Paying HOA dues if applicable
Furthermore, you will need your credit to be good, preferably with less than 12% of your viable credit being utilized. A down payment of 15-20% is recommended, and you will also need to save money for closing costs after loan approval and the escrow process is completed. If you cannot handle these—you aren’t ready yet.
Decide How Much Home You Can Afford
There are mortgage calculators available online that quickly help you determine how much home you can afford based on your income, credit rating, debt and other factors. Ideally, a mortgage payment should be no more than 25-30% of your annual income. Buying more home than you can realistically pay for can spell disaster for families.
Begin Loan Shopping
You’ll want to get pre-approved for a loan before home shopping, as many sellers request that their listing agent not show the home to those not pre-approved. Hire a mortgage broker to help you explore loan types and payment options, and these pros will help you find the best rates for mortgages, as well.
Hire a Realtor
From this point, an experienced realtor can help you find homes for sale in Rockport Texas that are within your budget and meet your family’s needs. They will handle the negotiations, walk you through home inspection reports, handle the contracts and escrow process and the entire process from start to finish.