You are young and single or a young married couple. You are responsible and saving money because you would like to purchase your first new home sooner than later. However, you have so many concerns and questions! How are you going to get a loan? How are you going to afford the down payment? What kind of house does a young, single professional or young married professionals really need?
The good news is that it is a lot easier for young people to get into a home that might not be the home of their dreams, but that is a good first step into homeownership.
The Biggest Problem You Will Face Buying a Home
Most first- time homebuyers lack the education of how the whole home buying process works. There are lots of misconceptions when it comes to buying your first home including the amount of money needed as a down payment. Many young buyers do not realize that you can purchase a new home today with as little as 3% down payment.
Plan for All Costs
It is very important that young home buyers budget for all costs including furnishing the home, all utilities including electric, gas and water, and HOA dues where applicable. Home inspections and home warranties will also be costs to consider during the process. It is also important for young buyers to understand that title, lender and attorney fees are typically paid out of closing and a good lender can educate you about those.
One thing that all experts agree on is that first-time home buyers need someone to help guide them through the process. A referral from friends and family regarding a Real Estate Agent and Mortgage Loan Originator is always a good source when beginning the process. In the interview process you want to ask plenty of questions and develop a high level of confidence and trust with the professionals that you choose to be confident they know the process well to guide you through it.
Programs for Young, First-Time Home Buyers
Of course, you are going to be interested in what programs are available to first-time home buyers such as you. Speak with your mortgage lender about what state and federal plans will help someone of your income, age and credit rating get into the right home.
The Perks of Being a Homeowner
Once you get past the idea that you need to come up with a lot of money up front, becoming a homeowner becomes much more attractive. Statistics indicate that your mortgage could be as much as 20% less than renting a comparable property. Other advantages are that you are building your credit rating and building equity in your home. A key point is that you look for a home with good resale value as your first home is not the one you will live in for the rest of your life.
The bottom line is that no matter how you slice it, you are always paying someone’s mortgage. It might as well be your own.
Source:MainStreet Real Estate
Steve Lester is a REALTOR living in Allen, Texas