Purchasing your first home
Purchasing a home is most likely the biggest financial burden you’ll ever make in your life; and for many it’ll be the most serious financial commitment.
If you are a first time home buyer, this article includes mistakes that can be avoided by a first timer.
Being prepared – When beginning the home buying process, its crucial to get a copy of one’s credit reports together with your spouse if they’ll be your co-borrower. Having a higher credit score is vital before you apply for a mortgage. While anything above 740 is considered to be admirable anything below 700 would need some improvement as otherwise could lead to a higher interest rate. Being pre-qualified has its own benefits; helps to act swiftly when you find the right purchase.
The assumption on eligibility – many of those who are on rent think that they cannot afford to buy a house due to the large down payment needed. It is true that most loans require 20% as an initial deposit, however, you would be surprised to see some programs offered to first-time buyers. One such is the FHA Loan, which allows for down payments as little as 3.50% while some conventional loans allowing to as low as 3.00%.
Budgeting finances – ideally a pre-qualification letter typically includes the maximum loan the lender can offer; however, it is not advisable to use up all of it. Buying a home comes with significant costs that include the downpayment and closing costs. Make sure to have enough savings for any emergencies. Also as per the industry standards, it is not recommended to spend more than 30% of one’s monthly income on his/her total monthly expenses.
Finding the right lender – it is important that you meet a mortgage broker who can educate you on programs that best suit your requirements. Some of the programs we broker include: VA Loans, FHA Loans, Jumbo loans, etc. We are an independent broker and don’t work for any specific lender. More reasons to provide you with multiple offers to make sure you get the best deal out of alls.
Once you are
A piece of real estate is a unique and heterogeneous asset involving cross disciplinary fields, real estate is one of the most significant asset classes, contributing significantly to the national economy, involving building, machinery, the acquisition of various property rights, and others.