Buying Your First Home Guide
Important Steps for the First Time Home Buyer
Preparing to buy your first home can be both exciting and confusing. The process itself can cause even older homebuyers to scratch their heads in wonderment and hope they know what they are doing. For instance, you may not have had a need to engage the services of a lawyer, and it’s very unlikely you’ve attempted to borrow money in the six figures from your local bank.
Instead of remaining confused and not sure what to do when buying your first home, you should seek the help of a professional such as those at Real-Estate-Yogi.
Important Considerations before Buying Your First Home
Before you are ready to buy your first home you must make sure the following things are already in place:
- You have the money for a large down payment. The more money you have available, the better, but you should plan for twenty-percent of the purchase price in addition to enough to cover your closing costs and other fees.
- Be in the habit of saving money. When you can show the lender you have steady employment and regularly contribute to your bank account it will be easier for you to obtain a mortgage to buy your first home.
- Becoming pre-approved for a home loan is becoming commonplace today. This gives you an opportunity to compare the offers of several lenders before making a final decision.
- Always have some additional money in savings in case the interest rate increases and you have to pay a higher monthly payment.
Important Steps for the First Time Homebuyer
- The amount you will be able to borrow on a first time home buyer loan is contingent upon several different factors such as how much the home is worth and your disposable income.
- First time home buying is much easier when you have a conditional pre-approval. Pre-approvals can give you an idea how much you will be able to borrow from a particular lender.
- There are three ways to buy a home: auction, tender and negotiation with the seller of the property. Tender means several people bid on the same property and the seller chooses the offer he or she likes best.
- Once you have made an offer and the seller has accepted it with any terms you have identified (such as things you want repaired, appliances you want included, etc.) the contract becomes binding.
- There are several options for a first home buyer loan. You can choose from fixed rate, adjustable rate and other flexible terms. You want to discuss the options with the lender and choose the one that is right for you.
FAQ’s You Need to Know When Buying Your First Home
- How much money is necessary for a down payment?
- How can the first homeowner grant help me with buying my first home?
- Is there a way to get an idea how much money I may be able to borrow?
A conventional mortgage requires a down payment of at least twenty percent. Mortgages that require less than twenty percent of the purchase price are called high-ratio mortgages and require the payment of mortgage insurance premiums.
The first home buyers grant is a program that provides a one time payment that assists eligible first time buyers with various aspects of the home buying process. You may see it referred to by different names depending where you live, but the key is “first time homebuyer” or something similar.
There are different ways to gain knowledge about the amount of mortgage you may qualify to obtain. There are various first home buying guides that can provide some assistance in this area.
How to Buy Your First Home with the help of Real Estate-Yogi
How can Real-Estate-Yogi help you buy your first home? Some of the things they can do for you include:
- Help you choose the right home from all the available possibilities
- Guide you through the loan application process
- Complete any necessary paperwork on your behalf
- Help you understand the costs and fees that are involved with your home purchase
- Help you place your application for any first time buyers program for which you may qualify
- Making sure you are aware of any other grant programs or incentives for which you may qualify as a first time buyer