Basics of Property Management: Screening Potential Tenants
4 Common Mistakes First-Time Home Buyers Need To Avoid
Jesse Obrien
Buying your first home can be exhilarating, but when you're inexperienced in making real estate transactions, you may be prone to making some mistakes. Being a new buyer can be confusing and stressful at times, but if you are prepared, things are more likely to go smoothly. If you plan on buying your first home this year, avoid the following common mistakes:
Not Getting Pre-Approved for a Mortgage
Most first-time home buyers do not have the funds to pay for a home in full with cash, so a mortgage loan is needed. If you're planning on financing your home purchase with a mortgage, it is essential to get pre-approved prior to looking at any homes for sale. Getting pre-approved involves submitting an application and financial documents to your lender; after your application goes through underwriting and is approved, you will know exactly how much the lender will loan you, and what interest rate you will be charged.
Being Unrealistic
In most cases, first-time home buyers do not have the budget to purchase their dream home that has every feature and amenity that they want. When you're a first-time buyer, there is a good chance that you may need to compromise a little bit in order to find a home that best suits your needs. It can be very helpful to make a list of the top things that you must have in a home to share with your real estate agent so he or she can find homes that you may be interested in.
Looking at Homes Above Your Budget
Looking at homes that are out of your price range can be very frustrating. While you may sometimes be able to negotiate down the price, this rarely happens if it is a seller's market. The last thing you want is to fall in love with a house that you can't actually afford to buy. It is in your best interest to stick to looking at homes that are within your price range.
Making Major Financial Changes Before Closing
After you find your first home and your offer is accepted, it will go into escrow. During this period, it is very important to not make any changes to your finances. Things like quitting or changing jobs, taking out an auto loan, or racking up credit card debt can put your mortgage in danger if your credit score decreases or your job history is short. In order to make sure that the deal closes properly, avoid spending money while the house is in escrow and don't make any employment changes.
To learn more, contact a company like RE/MAX Kerrville.
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For the last several years, I've used a property management firm to help with my rental properties. One of the tasks that they handle for me is screening applicants who would like to move into one of my vacant units. Their expertise has helped me lower my tenant turnover and find people who want to stay with me for years. Part of the process is a tenant screening credit check. Before any further contact takes place, my manager orders credit reports from at least two agencies. That is enough to tell us if an applicant is a good financial risk. Assuming the references work out, I meet the candidate and make the final decision. If you own rental properties, let me tell you more about the benefits of having a property manager. I'm betting you'll find this type of arrangement will work for you too.