What You Need To Know About Buying Your First Home !LINK!
Some lenders only care about profits, while others actually care about helping you become a homeowner. Talk to at least three lenders. Compare their interest rates, fees and customer service to find the best one for your finances and peace of mind.
what you need to know about buying your first home
Want to meet an agent you can trust? Connect with the RamseyTrusted agents in our Endorsed Local Providers (ELP) program. RamseyTrusted ELPs are top-performing agents who will help you find a home that fits your needs and budget.
Here are the basic home-buying steps: Determine how much house you can afford, get preapproved for a mortgage, find an experienced real estate agent, research neighborhoods for best fit, go house hunting, make a competitive offer within your budget, finalize your financing, and prepare for closing.
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Your home inspection report may reveal major or minor issues. Major problems will likely need to be dealt with before your mortgage lender will finalize your loan, while minor issues can often wait till you take possession of the home.
When thinking about buying a home, consider whether you want to put down roots or maintain flexibility with your living situation. How secure is your job, and can you comfortably budget for home repairs and maintenance on top of monthly housing payments? Are you ready to stay in one place? Do you have kids or family members to consider?
Spending all or most of your savings on the down payment and closing costs is one of the biggest first-time homebuyer mistakes, says Ed Conarchy, a mortgage planner and investment adviser at Cherry Creek Mortgage in Gurnee, Illinois.
There are lots of programs out there to help first-time homebuyers. This can range from local government or community programs that offer free classes about home buying and homeownership to grants that give you cash to put toward a down payment.
There are many assistance programs on the state and local levels, including first-time homebuyer tax credits; check your state's housing finance agency. Other programs include:The U.S. Department of Housing and Urban Development funds public housing and offers vouchers for low-income Americans.The U.S. Department of Veterans Affairs (VA) has home loan programs for service members, veterans, and eligible surviving spouses.The U.S. Department of Agriculture (USDA) has a homeownership program for rural Americans.The Federal Housing Administration insures mortgages and offers downpayment assistance, making a home purchase more affordable."}},"@type": "Question","name": "What kinds of questions should you ask your realtor when buying your first home?","acceptedAnswer": "@type": "Answer","text": "You should ask your realtor questions about the technical and business aspects of homebuying. A realtor will have great insight into your negotiating options and what kinds of concessions or contingencies are appropriate for your situation. You can ask about the sales history, comparable sales in the area, and who to hire for the home inspection. Consider asking your realtor whether they would buy the home to learn what they see as the pros and cons of the home.","@type": "Question","name": "What things should you buy when moving into your first home?","acceptedAnswer": "@type": "Answer","text": "Some important purchases that are sometimes overlooked by first-time homebuyers include cleaning supplies. For example, what types of floors does the home have, and do you have the proper tools to clean them? If you're moving into a house from an apartment, you may also need to stock up on yard supplies like a lawnmower.","@type": "Question","name": "What is the tax credit for buying your first home?","acceptedAnswer": "@type": "Answer","text": "The first-time homebuyer tax credit is up to $15,000 or 10% of the home's value (whichever was less)."]}]}] .cls-1fill:#999.cls-6fill:#6d6e71 Skip to contentThe BalanceSearchSearchPlease fill out this field.
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Through the home inspection, you can learn about any issues that may prevent you from buying the home. These may include mold, termites, foundation problems, or a roof that needs to be replaced. The inspection can save you thousands in repairs later on.
You should ask your realtor questions about the technical and business aspects of homebuying. A realtor will have great insight into your negotiating options and what kinds of concessions or contingencies are appropriate for your situation. You can ask about the sales history, comparable sales in the area, and who to hire for the home inspection. Consider asking your realtor whether they would buy the home to learn what they see as the pros and cons of the home.
Some important purchases that are sometimes overlooked by first-time homebuyers include cleaning supplies. For example, what types of floors does the home have, and do you have the proper tools to clean them? If you're moving into a house from an apartment, you may also need to stock up on yard supplies like a lawnmower.
One of the trickiest hurdles for young adults, so many of whom are lugging around student loan debt, is the debt-to-income (DTI) ratio. Mortgage companies want borrowers to have a certain level of cash flow each month, and that means taking into account how much you're paying out to other lenders. Ideally, a borrower's debt-to-income ratio -- how much you pay toward debt each month divided by your gross monthly income -- should fall below 36%. (Strictly speaking, a loan is considered able to be paid if the DTI doesn't exceed 43%.) If yours doesn't, think about how you can get that debt needle moving in the right direction."The best way to do this is to pay off any unsecured debts like credit cards and personal loans, and keep them as close to a zero balance as you can," says Harriman. 041b061a72