Investment Purchasing Procedure: 3 Steps to Buy Your First Rental Home
Buying your first home is literally not that complicated, if you have good honest guidance along the way. Your first home should be an investment and if you want to save a lot of time, tension, and frustrations, it’s important to have a dependable real estate agent. An experienced real estate agent can help you through the way of complicated buying process of a new home.
“It is only by risking our persons from one hour to another that we live at all.” — William James
Following are step by step guides from a pro real estate agent. These steps will help you understand the investment purchasing procedure and take right decision:
Let the Agent save You Great Amount of Time and Energy:
Time is the most important commodity for everyone. So, let your real estate agent invest his time to save yours. Firstly, with proper explanation, he/ she will provide you with good advice about purchasing your first rental home. The agent might ask you several questions regarding your needs during an initial consultation. You will be asked about your preferred home size, number of bedrooms, bathrooms, whether you need a garage, and many other similar things. However, you have to be realistic while deciding your needs or wants. A realistic approach to buying your first home would make the whole process affordable.
Decide on how much you can afford:
A good agent will help you understand the investment definition at the very first moment you decide to buy your first home. The agent must ask you some basic financial questions so he/she can determine your target price range. From the basic information, your real estate agent will be able to calculate the gross and total debt term ratios. This will ensure that your dream of buying the first home will not turn into a nightmare. Your agent will also advise you on your maximum buying ability. It may seem to you that your agent is just trying to maximize his/her commission. However, the truth is that a good agent never wants you to compromise too much to save a little money.
Getting your finances organized:
Your agent will also help you organize your finances when you are ready to buy your first home. He will explain the entire investment purchasing procedure and help you get mortgage pre-approval from your bank. The agent may recommend mortgage broker from his/her acquaintances as well. This process involves several documents including financial statements, tax returns, employment notices, written confirmation for the down payment and others.