Buying a home is stressful, complicated, and a long process. And it’s toughest on first time homebuyers (who happen to make up 34% of all homebuyers). The rules can be a bit different, too, and we figured we’d have a little free guidance.
Here’s Five Fast Facts For First-Time Home Buyers:
- 🏠Mo’ Problems - There are a lot of unexpected costs. You might be familiar with a down payment, but there are also other things you might not be aware of, like closing costs, move-in expenses and even paying for a home inspector! Do your homework and be prepared to save!
- 🏘️Choose One - There are different kinds of mortgages, including conventional loans, FHA loans, USDA Loans and VA Loans. Each has its own unique qualifications. Do research and find out what fits your goals best.
- 🏚️Ensure You’re Insured - You need homeowners insurance to close the deal. You’ll want to get enough to cover the cost of rebuilding your house if it’s destroyed. Worst case scenario, of course.
- 🏡I Approve - You need to be pre-approved when you start shopping. Applying for pre-approval from more than one lender to find the best rates won’t hurt your credit score as long as you apply within a limited timeframe.
- 🥚Don’t Count Chickens - Don’t buy a home expecting the value to appreciate. Selling your home won’t necessarily cover your retirement, so don’t ever assume that will be the case. As we saw in 2008 when the market went bust, things can change on a dime.
🔥Bottom line: There are so many moving parts that come with home buying that it’s very, very easy to get overwhelmed. A good realtor goes a long way toward guiding you through the process, but it’s important to have a decent idea of what you’re doing as you move forward.
Are you a first time home buyer?
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