First Determine a budget
When determining your budget, it’s time to consult with the 24 HR Team. We will show you how to get your finances in line for your home purchase.. The price of a house isn’t the only expense you’ll have. Some other expenses include taxes, appraisals, closing fees, home insurance, etc. Also, sticking to your budget is important, because you may be approved for a $500,000 loan but it doesn’t mean you should go higher than your budget.
Find out what loans and programs are available to you
First-time home-buyers typically know what a mortgage is, but don’t know the different types of home loans available and how they differ. Some clients may fit a FHA loan better than a conventional loan . It always a great idea to ask your lender what loans are available to you and how they differ.
Also, there are assistance programs that first-time homeowners can take advantage of in California. The program helps people get government-insured, fixed-rate loans while having the option to roll down payments into the loan. Other programs focus on assisting home-buyers with down payments for those who may not have the resources to put down such a big payment.
Find an agent you trust
It’s very important to find an agent that can trust while looking for a home. It’s one of the biggest purchases a person can make and you want to be able to trust and openly talk to your agent. Take your time finding the perfect agent and find one who will listen to you as well as explain each step in the process.
The 24 HR Team is ready to help in your home search. We are always happy to assist all first-time homebuyers in the process of buying their home. We are there every step of the way! Contact us today to get help with buying your first home.
Purchasing too big
A common mistake that first-time homebuyers make is not getting pre-approved for their home loan. They put an unrealistic price and size for their house before they know how big of a home they can actually get. Just because you have an increased income and down payment, it doesn’t always mean you’ll get approved for the loan.
Figure out what you want in your home
While most home-buyers look for a house with a specific number of rooms, bathrooms, and the quality of the house interior. When buying a home, it’s always a good idea to consider the area and what’s around as well as the house itself. Is the house near a good school? Is this an area you can afford to live in? And any other such questions should be considered.
Save up for your down payment
It’s very common to put a 20% down payment on a home, but with first-time home buying programs it’s possible to only put down 3% for your home. The flip side to this though, is that a down payment that is less than 20% means you are required to pay private mortgage insurance. Despite the low percentage for first-time home buyers, it’s still a hefty amount for a down payment. As an example, 4% of a $250,000 home loan is $10,000.
The sooner you save the sooner you can get your home. This also includes people who are in their 20’s. It is considered impossible to get a home with static wages, student debt and a tough job market. With enough savings and first-time home buying programs, it’s definitely possible to get a home!
After purchasing your home, you may think that everything is up to you to manage. Not the case, you will continue to be supported and educated on how to manage your mortgage. We will walk with you to ensure your first two to 4 years, you are getting the value, equity and your first refinance complete with ease! Your mortgage partner for life!