Advice for First-time Homebuyers
Being a first-time home buyer can be very exciting, but at the same time it can be just as nerve racking. You need to deal with mortgage options, how much down payment to put, and which real estate agent to use, and a host of other choices that need to be made. The following list will help you with some of the things you need to consider when purchasing your first home. Find the Right Agent Whether you are going to buy or sell a home, you need someone who really knows the market you want to buy in. Therefore, it is necessary to work closely with a local Realtor. It is essential for the buyer to find an agent that they are compatible with. In addition to being compatible with the buyer, the agent should be knowledgeable of the area, highly skilled and motivated. Save as Much as Possible for the Down Payment Commonly, most first-time home buyers will need 20% of the home’s purchase price for a down payment. There are lenders that will allow for a much lesser amount, but paying a lower down payment amount may result in higher ending costs. The first-time buyer should save money from their paychecks, work bonuses, and tax refunds, and keep track of savings. Check out all of the Mortgage and Down Payment Options With all of the existing mortgages available, there always one option that can save you money, so check around before you commit to a loan. The first-time buyer should look into all of the pros and cons of each loan before deciding which is best. Buyers that are struggling to save up enough for the down payment should also consider conventional mortgages, FHA loans and, for qualified veterans, VA loans. The down payment has a direct effect on the amount of the monthly mortgage payments and the interest rate. A fixed mortgage that is taken out for 30 years usually offers the lowest mortgage payment. The customer who wants a lower interest rate would benefit from a 15-year fixed rate, which has a much lower interest rate for the duration of the loan. However, the customer that needs the lowest possible interest rate for the first few years of ownership might consider an adjustable mortgage because, even though they are risky loans, they offer the lowest interest rates during the first years of ownership. Look into State, Local and Federal Assistance Programs First time home buyers can usually find assistance programs offered through the states, counties, and municipalities, including the the federal government as well. These programs can assist the buyer with down payment and closing costs, tax credits and interest rate discounts. Keep up with Credit Scores The credit is a key factor in determining if the loan will be approved, and has an impact on the interest rates, as well as the loan terms. Keep up with credit score information and dispute all errors that may be lowering the credit score, and at the…