Five Things You Might Not Know When Buying Your First Home
You've finally decided to take that step and you're super-excited. You've viewed half a dozen homes online and you think you're ready to take the plunge.
You've even pictured yourself living in your new home. Before you continue, you need to get out of dreamland and into reality.
Buying a home is a huge step that will impact your finances for a long time to come. You, therefore, need to approach it with a sober mind.
Here are a few things you need to know before buying your first home:
You Need an Agent
Finding the right home is not a walk in the park. There are hundreds, even thousands of homes out there crying for your attention. Unless you get guidance, you are likely to get lost in the maze.
You need an estate agent to walk you through. A real estate agent is experienced in this sector, knows the market and could be having information that is not readily available; such as updated listings of homes for sale.
You Need to Have Your Mortgage Preapproved
You need to have hard facts on hand concerning your mortgage amount before you go house-hunting. A pre-approval will help you put a cap on your budget as well as show your seriousness as a buyer.
It also helps you to move faster once you identify the house you want.
You Need a Lot of Cash Upfront
If you're imagining that your mortgage is all you need to step into your new home, you're wrong.
In addition to a significant down payment, you will need to factor in the closing costs. These may include the attorney's fees, flood insurance, and title insurance.
Monthly Payments will be Higher
Over and above the principal amount and the interest, you need to include other costs such as home insurance and property taxes. Your lender will also charge a Private Mortgage Insurance fee if your down payment is less than 20% of the cost of the home. In addition, you will need to factor in other monthly expenses such as utilities, internet/cable TV and Homeowners Association Fees where applicable. Definitely check mortgage rates in your area to make sure the range is reasonable before you start applying for a mortgage.
Buying your first home should be a happy experience. Being financially prepared will make the journey enjoyable. Before you seal the deal, consider the down payment, closing costs and monthly payments, then get a trusted agent and move on. Good luck!
Contact a company like Premium Mortgage Corp for more information and assistance.