Home Buying Timeline for First-Time Buyers | Moss Realty

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The Pros and Cons of Buying a Property

Owning a house is a goal shared by many people. If you’re planning to move into your dream home soon, there are a few things you’ll have to consider. One such decision is whether buying a property is the best course of action for you.

While buying or renting is a suitable option, finding a house through your real estate agent presents some unique benefits, though doing so also comes with a few drawbacks. Here’s an overview of the pros and cons of buying a residential property.

Pro: Builds Home Equity

Investing in your own home equity that increases over time is the perfect way to boost your property’s value. This approach is preferable to paying rent money every month, and it allows you to earn a profit if you decide to sell your house after a set time. Should you fall into debt and require financial support, it’s also possible to cash out and refinance a percentage of your equity to help you get back on your feet.

Con: High Upfront Costs

Back then, buying a property entailed an expensive 20% initial deposit. Though, changes in recent years now allow mortgage down payments for as low as 3%. While this rate seems like a good deal, the caveat is that you’ll have to pay higher mortgage insurance payments and a higher monthly interest rate

Pro: Improves Credit

Regularly paying your mortgage allows you to build your credit score. Delivering your payments on time will show that you’re financially responsible, leading to a consistent boost in your credit score. Keep in mind, though, that after taking out your mortgage, taking a large loan is not an advisable move for the next six months or further.

Con: Property Taxes and Other Fees

Monthly fees are a recurring variable in a homeowner’s life. If you decide that buying a property is for you, below are some of the fees that you’ll have to pay regularly:

  • Property Taxes
  • Homeowners Insurance
  • Private Mortgage Insurance
  • Homeowners Association (HOA) Fees
  • Utility Costs

Pro: Long-term Life Stability

Studies show that individuals who’ve bought their property instead of renting are less likely to move within any given year. Homeowners also integrate well with their community and enjoy stronger social connections and better civic engagement.

Cons: Need for Maintenance and Repair

Even if you find an impressive home through the real estate market, your property may still need a few repairs. Be prepared and set aside an extra budget, preferably 1% to 3% of your house’s purchase price, for the maintenance of your structure.

Get Comprehensive Advice from a Trusted Real Estate Company

Give Moss Realty a call if you need professional assistance buying a property. Our team has over 20 years of experience serving Gaston and nearby counties, so we can help you with any real estate service you need. You can also visit our office to learn about what we do firsthand.

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Home Buying Timeline for First-Time Buyers

Home Buying Timeline | Family of First-Time Home Buyers

If this marks your first time looking for a home, check out this home buying timeline to make the process easier. You can also ask a reputable agent or use real estate tools and resources to learn more.

Looking for a Real Estate Agent (1 to 2 Weeks)

Hiring the first expert you encounter leads to a fast transaction, but there’s no guarantee that you’ll end up with a reputable pro. Be sure to do an extensive search, create a shortlist of candidates, and interview each one thoroughly before making your decision.

Getting Mortgage Pre-Approval (1 to 2 Weeks)

To get the best option for your mortgage loan, take time in your search not only for an exceptional lender but also for different mortgage types. Once you’ve found the right company, the pre-approval process typically takes one to five days.

Viewing Open Houses (1 Week to 4 Months)

Your agent can arrange house viewings to give yourself a comprehensive look at the properties you like. Depending on where you live, your offer can get accepted on the same day you make it. In other markets, you’ll have to wait months for a suitable home, and even then, you’ll have to hope that your offer doesn’t get outbid.

Making an Offer and Negotiating (3 to 5 Days)

If a house finally feels right, you and your agent can make an offer for the real estate. You’ll have to wait whether the seller accepts or declines your offer. The owner can also negotiate with a counteroffer, so it’s up to you whether you’ll agree to a compromise, pitch another rate, or walk off.

Getting Loan Approval (1 to 2 Months)

With a pre-approved mortgage, you’ll have to present all essential documents to your lender, so they can approve your loan. On average, this house closing process can take up to 50 days.

Waiting for Appraisal (1 to 2 Weeks)

An appraiser will help you accurately determine the market value of your chosen property. Their report often comes after three days, though scheduling their services takes about a week. The appraisal results will show whether the asking price is fair for you or if you’ll need to renegotiate.

Performing a Home Inspection (1 to 3 Weeks)

To ensure that the house you’re eyeing doesn’t have any hidden issues, enlist the services of a licensed home inspector. These professionals often take ten days to conduct a thorough check.

Closing on Your House (1 Day)

The final part of the home buying timeline requires you to do a few more things before locking in your property. Once you deliver your down payment and closing costs and sign several documents, you’re finally free to call yourself a homeowner.

Find Your Next Home With Moss Realty

Contact Moss Realty if you need help securing a property. Our team has a reputable track record with over 20 years of experience serving North Carolina, so working with us ensures you’re in capable hands.