First Time Home Buyer Wisdom – Step 1, Are You Ready?
Buying a home for the first time is an exciting event! And, it can be a little scary too. Doing your homework, as with anything in life, always has its benefits. There’s so much valuable information available online. Also, talking to parents or others who have been through the process can reveal a wealth of information too. Another option is to talk to a real estate agent, or two or three. Write down your questions and concerns before hand so you can get the answers you need. Take your time and trust the process. Here is some First Time Home Buyer Wisdom from Realtor.com.
Do You Know What You Want
Whether you are a first-time home buyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe?
Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting with local REALTORS®.
Do You Have The Money?
Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require a 5 percent down payment or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down.
In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a home with no money down, but also underwrite closing costs.
Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most home buyers choose to buy with some cash up front.
As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Speak with local REALTORS® for details.
Is Your Financial House in Order?
Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.
Happy First Time Home Buying! And remember when you are ready to move home or office we would love to help! Get a free online quote today.
Comments Off on First Time Home Buyer Wisdom – Step 1, Are You Ready?
