Buying your first house can be one of the most overwhelming challenges in a lifetime yet one of the most rewarding experiences. However, it doesn’t have to be frightening when the needed research and steps are taken appropriately. After all, you are doing the right thing; you’re about to own your house!
The first steps to consider
Some of the steps to consider in this worthwhile process are to look into the Federal Housing Administration, (FHA). The FHA helps you insure your loan, lower down payments, lower closing costs and offer qualifying credit. Click here http://www.fha.com/fha_loan_requirements for FHA requirements.
Talking about interests on your loan, FHA is great because your down payment can be as low as 3.5% of the purchase price, which is available on 1-4 unit properties. Additionally, a good option provided by FHA is to be able to include the cost of energy improvements into an FHA Energy-Efficient Mortgage. Now things are sounding better because you will be saving money and not looking back to renting ever again! For more advice, call (267) 521-1502.
Financing options as a first-time homebuyer
As a new first-time homebuyer, you must not forgo checking your credit as a necessary stage of the process. Credit gives you the liberty to finance your home. You can get a free credit report at http://www.annualcreditreport.com to start with. Remember that your credit report will play a potential role in how much of a loan you can get. One of the conscious efforts to make on your part is to track your spending habits. Analyze where your money goes at the end of each month because this can help you strategize your financial costs appropriately. Utilize the free mortgage calculator to give you a numerical idea of your future monthly mortgage.
Key points in the home buying process that many first timers ignore
Hire a trained professional to inspect the new home you plan to buy. What could be worse? That you find everything flawless in the place you’re about to spend money on? Many first timers are quick to buy the house and move in, instead of taking these important steps. This step allows you to understand the areas that need renovation and reconstruction. You will then be prepared for the challenges rather than be surprised and then become miserable with your decision.
Secondly, don’t be afraid to negotiate prices with your real estate agent. There will be nothing to lose on your end. Remember, you will be the one paying for the mortgage, not the agent or the seller. Be confident, persuasive and persistent. The worst thing that could ever happen is you don’t get a counter-offer, and at that moment you simply quit. It’s what you want. Just don’t put added pressure to yourself. It is your decision, your home, and you must not shy away from what you can afford or deal with.
Don’t make these foolish decisions as a first-time homebuyer
Don’t bite more than you can chew; in simple terms, as first-time homebuyers you don’t need to impress anyone. Impressing everyone else but yourself can lead to a poor financial breakdown. If you can’t afford the mortgage in that luxurious neighborhood with a security gate, or camera surveillance then don’t! Whomever you are trying to impress doesn’t care. Fit your budget into the home you can afford.
Don’t forget the homeowner’s insurance, closing costs and property taxes. Include these costs in your budget so you don’t become overwhelmed.
Don’t pay mortgage while your house is being renovated. What is the point of living outside of the home while it is being renovated, and yet you’re still paying for a mortgage? It’s a waste of time and money especially if the renovation takes longer than six months. It only makes sense if you buy the house 100% cash in full; then you can take that bold financial step. If not, you will be drenched in financial waste. If you are going to be paying a mortgage, it’s advisable to move in and then gradually fix things. Or better yet, start urgent reconstruction that could pose harm before moving in.
Don’t take on other luxuries such as buying a new car, taking an expensive vacation or shopping frivolously at least within the first year of buying your first home. The idea is to get familiar with your new spending habits now that a mortgage is involved. After you’ve carefully figured yourself out financially, then you can explore all other options.
One major thing to remember, don’t stress. Rather find ways of managing the stress and rather enjoy the process as a first-time homebuyer. It’s an experience you must be ready to explore and appreciate.e and appreciate.