What Every First-Time Home Buyer Should Know
Do you think you’re ready to buy your first home? Has the time come for you to stop paying rent and take on your own mortgage? Before you get ahead of yourself and start furniture shopping, here are some important things to know. Buying a home for the first time is a BIG investment, and a huge commitment. The tips below are important things for you to know as a first time home buyer… So your first time home buying experience is a great one!
Start Saving Money Now
Down payment’s for a home can not be made with pocket change. So, if you know there’s a chance buying your first home is in your near future… NOW is the time to begin saving money. In fact, even if buying a home is not in your near future, but is a goal at some point, start saving now!
The general rule for a down payment is 20%, although there are some loan programs that offer options as low as 3% and even zero down. Keep in mind the less down the more financed and the bigger the mortgage. Your real estate agent can assist you with the first-time home buyer loan programs that you may qualify for.
A pro tip for saving money now – Erica Diaz Team: Create a budget and stick to it! This will help you put away money for your down payment each month. Also, cut out some things that you do for fun, but do not need. This will allow you to add a little more to your savings.
Fix Your Credit
Credit is a BIG factor when it comes to buying a home. While you might be able to get a mortgage loan with bad credit, it will be for a lower amount and a higher interest rate, than if you had good credit. Any errors or negative marks on your credit score will affect what mortgage lenders will offer you. Lenders use your credit report to determine how much to lend you and at what interest rates.
A pro tip for fixing your credit – Erica Diaz Team: You can get your free credit score and report here. This will help you better understand what NEEDS to be fixed before applying for a home mortgage loan. Once you know what is negatively affecting your credit, start making steps towards fixing the issue.
Know What Owning A Home Really Costs
Owning a home comes with much more than a mortgage. With all the excitement of house hunting and day dreaming of future dinner parties, other home owning costs can easily be forgotten.
First comes a mortgage, then comes land taxes, home association fees, lawn maintenance, home insurance, and anything that breaks. As a new home owner you are now responsible FOR IT ALL! Grab a piece of paper and write everything down, this will allow you to actually see what owning a home really costs.
A tip about what owning a home really costs – Erica Diaz Team: Ask a local real estate agent for examples of taxes and other expenses/fees that are associated with the home you have your heart set on. If you are house hunting in Winter Garden, Clermont, Windermere or a surrounding area, our knowledgeable real estate agents at the Erica Diaz Team would love to help you buy your first home!
Don’t Borrow More Money Than You Need
Your mortgage lender may show you a bigger number than you were expecting. Don’t start jumping for joy and increasing your price range to fast. The bigger the mortgage, the bigger your monthly payment, and the longer it will take to pay off your new home. You do not have to take the full amount offered. Remember, this is your first home, there will be plenty of time to upgrade after you’ve been a home owner for a while.
A pro tip about not borrowing more money than you need from the Erica Diaz Team: Before you receive your loan offer, determine what you can afford to pay monthly. Keep your lifestyle and other bills in mind. Also, be mindful of unexpected events and determine what amount is doable if one would occur, such as your spouse loosing their job.
Work With A Real Estate Agent
As a first-time home buyer, working with a real estate agent is going to save you time and the headache. Real estate agents are professionals that know all the ins and outs of the home buying process. They will be your pricing expert, making sure your home is priced fair. House hunting is one of their best skillsets. They even know of homes that are’t listed yet. Are you confused about your financial options? They can help you to understand all of those and guide you towards the right choice for you. Home buying also comes with paper work, paper work, and more paper work! No worries, a real estate agent can whiz right on through it!
A pro tip about why you need to work with a real estate agent – Erica Diaz Team: Buying your first home can be a confusing and at times frustrating process. Working with a real estate agent from the beginning will ensure you have the smoothest experience with the best possible outcome! Our team of realtors are extremely knowledgable with assisting first-time home buyers buy their first home.
Key Takeaways Every First-Time Home Buyer Should Know
Start Saving Money Now – A down payment is (in most cases) necessary to buy a home. It is important to start saving as soon as possible. If buying a home is in your future at all…START SAVING MONEY NOW!
Fix Your Credit – The better your credit is, the higher the loan amount can be and the smaller the interest rate can be. So, make sure you are monitoring your credit and fixing things on it that need fixed.
Know What Owning A Home Really Costs – There is a whole lot more that comes with owning a home than paying a mortgage. Once you are the home owner, you are responsible for all the upkeep.
Don’t Borrow More Money Than You Need – Don’t get carried away with purchasing a home at the top of your budget. Just because you are able to get a big loan does not mean you need to spend that much (and most importantly that you can realistically afford that much!).
Work With A Real Estate Agent – If you are a first-time home buyer, that means you have never bought a home. Leave the hard work to a professional. Trust us, you will thank us for it later after experiencing what all actually goes in to purchasing a home!
The Erica Diaz Team – What Every First-Time Home Buyer Should Know
If you are considering buying your first home in Central Florida, call the Erica Diaz Team today! Erica and her team live local and know the market. If you are ready to team up and work with real estate agents who are pricing experts, financing pros, house hunters, and can seamlessly knock out paperwork, then contact them now!
