3 Things Every First-Time Homebuyer Should Know

Buying your first home can be an incredibly exciting time. However, it requires a huge commitment and a sizable investment.

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I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period:

1. Know what you can afford

Your mortgage is only a part of what you will need to pay when you buy a home. Homeownership comes with plenty of other expenses, including closing costs, taxes, property insurance, maintenance costs, and homeowner association fees.

Once you have a clear idea of how much all of these items will cost, you can compare it to your current monthly expenses. Then you can figure out the kind of home you can honestly afford without getting carried away and without getting bogged down in debt.

2. Choose your lender wisely

Choosing a lender is not something you should base only on the lowest rate. A competent and trustworthy lender will offer you advice on how to improve your credit and also help you take advantage of special homebuyer programs that might benefit you.

But how do you find the right lender specifically for you? It's often best to get recommendations from friends who have already worked with a lender or from a real estate agent you trust.

An inspection will cost about $300, but it can save you thousands.

3. Don't overlook the details

There are many details that go into buying a home, and missing any of them can be a costly mistake. I always advise buyers to get a professional inspection done on their home, separate from the appraisal. An inspection will set you back about $300, but it can save you thousands of dollars down the line, and it can even prevent you from making a decision to buy a home that you would later regret.

A second example is understanding the fine print in the various contracts you will be signing. If there's anything that isn't clear to you, talk to your real estate agent and have it spelled out.

The process of buying a home can be intimidating, and that's why professional real estate agents are there to help. These three quick tips are only the start of the things you need to watch out for when buying your first home.

If you need more advice or you are ready to start looking for a home, give me a call or send me an email. I love working with first-time homebuyers, and I can help you get your perfect new home with minimum hassle.

5 Ways to Secure a Down Payment

Today I want to share five great ways to get the down payment you need to purchase your dream home. 

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There are five creative ways you can get the down payment you need to purchase your dream home.

First, if you’re getting married, crowdsource instead of doing a wedding registry. You can raise money for your down payment by using sites like Kickstarter or Feather My Nest.

Next, you can ask the seller to help with closing costs. There are a few different options with seller concessions, so make sure you ask your real estate agent what the best strategy is to get that extra financial nudge from a seller.

You can also look into government options. HUD housing offers different down payment and closing costs assistance depending on what you qualify for.

You should also check with your employer to see if they offer Employer Assisted Housing or EAH, which can help with down payment assistance. Access to EAH sometimes depends on the area you are looking to buy in, but it’s worth checking out.

Finally, check with your lender. They might be able to find a down payment assistance program that will work for you.

You don’t need a 20% down payment to purchase a home.

It’s a common belief that you need 20% for a down payment. However, you could get into a new home for as little as 3.5% down. To get a better idea of what your options are, make sure you talk to your lender and your real estate agent.

If you have any questions about purchasing or selling a home or you have any other real estate questions, don’t hesitate to give me a call or send me an email. I’m always happy to help!

6 Questions That Answer “Should I Buy My First Home?”

It is time to buy your first home or continue to rent? I’ll help you answer that today. 

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Thinking of buying? Search all homes for sale on the MLS 

When deciding between buying your first home or continuing to rent, there are six questions you need to ask yourself.

1. Are you financially ready? You’ll need money for a down payment and for closing costs, so you need to make sure that is set aside. It’s also a good idea to take a look at your credit score. Homebuyers can get loans with scores as low 620, but a score of more than 700 will get you the best rates. 

2. Are you prepared to make compromises? When buying your first home, you might not be able to afford to live in your dream neighborhood or get the optimal amount of space. You need to be ready to look at different neighborhoods and compromise on space.
 
3. Are you emotionally ready? Homeownership is very different than renting. If problems arise, they are your responsibility. Several things can pile up all at once that require your attention and finances. Make sure you’re ready to handle the stress.
 
4. Will owning pay off in the long run? The good news is your mortgage payment might be less than your rent, but even if it isn’t, you’ll be building your wealth in the long run instead of your landlord’s.

You need to be ready to look at different neighborhoods and compromise on space.

5. Have you outgrown renting? If your family is growing and you need more space, upgrading to a larger rental might not be in your budget. Instead, you can purchase a home that has the space you need.
 
6. Has your income increased? If you’ve recently seen an increase in your income, buying is a great option for a tax shelter.

If you are looking to buy or sell a home or if you have any other questions, please don’t hesitate to give me a call or send me an email. I’m always happy to help!