Financing: Buying Your First Home
When buying your first home, you should be prepared to ask yourself some important questions. Analyze your needs, your financial state and your plans to ensure you make the right home buying decision.
One key factor of buying your first home, or any home really, is the ability to save. People looking to buy a home have to be serious enough about it to save for a down payment first. There are loan programs available still that help the first time buyer buy a home with less cash upfront; however, most financial planners will encourage their clients to rent until they have a 20 percent down payment.
It is the discipline to save that pays off when the renter is ready to become a homeowner. When you become a homeowner, you not only have to make the predictable monthly expenses, but you also have to be prepared to protect your investment.
The amount the would-be buyer will need to save depends on in part on how reliable their income is.. Additionally, the would-be buyer should also consider the costs of owning a home and continuing to reach other financial goals such as buying a car or saving for retirement and or college. For anyone who is mid-career, there is a real need to put a lot of money into a retirement fund, and this needs to be a priority when choosing a home to avoid having more home than a retirement fund.
Research the loan application and home buying process while saving your money. There are a vast number of resources, including books and websites, to explain how the loan and buying process works. Additionally, there are free and lost cost seminars that are available to the first time home buyer.
Prospective buyers need to fully understand the elements of a responsible mortgage because the financial companies are good at marketing a monthly payment that does not reflect the true cost of a mortgage loan.
Financial planners recommend that the aspiring first-time buyer looks for a counseling agency that is approved by the Department of Housing and Urban Development, whether for a one on one session or for a class. The programs offered can help the first time buyer understand mortgage terms, budgeting and the process and role of the players involved in a typical real estate transaction.
Buying the first home is complicated; when additionally persons are involved it grows more complicated and complex. Couples often wonder whether they are ready to buy, they should consider the state of their relationship as well. Buying a home is often a stressful part of life; make sure you are both on the same page in your needs and wants.
It is vital to pay attention to the emotional health of your partner and your relationship. When you make the kind of investment such as buying a home you are making a huge statement that you believe in your relationship. Take care of it as you will your home.
Your real estate agent may be able to put you in touch with someone who can help. You can also search for a reputable mortgage broker to guide you and answer your questions.