A Guide to First Time Home Buyer Programs – Home Purchasing Guide

A Guide to First Time Home Buyer Programs. Like any big project, a successful home buying experience is all about getting the details right from start to finish. These tips for first-time homebuyers will help you navigate the process, save money and close the deal. They are in two categories:

  1. Preparing to buy guide
  2. Home purchasing guide

A Guide to First Time Home Buyer Programs

Preparing To Buy Guide – A Guide to First Time Home Buyer Programs

Start Saving Early

Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time homebuyers with excellent credit allow as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. Use a down payment calculator to decide a goal, and then set up automatic transfers from checking to savings to get started.

These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around. You’ll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades, and furnishings.

Decide How Much Home You Can Afford

Figure out how much you can safely spend on a house before starting to shop. NerdWallet’s home affordability calculator can help with setting a price range based on your income, debt, down payment, credit score, and where you plan to live.

Check and Strengthen Your Credit

Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer.

Home Purchasing Guide – A Guide to First Time Home Buyer Programs

Pay For a Home Inspection

A home inspection is a thorough assessment of the structure and mechanical systems. Professional inspectors look for potential problems, so you can make an informed decision about buying the property.

Standard inspections don’t test for things like radon, mold, or pests. Understand what’s included in the inspection and what other inspections you might need. Traditionally the buyer attends the inspection. By following the inspector around you can get a better understanding of the home and ask questions on the spot. If you can’t attend the inspection, review the inspector’s report carefully and ask about anything that’s unclear.

Negotiate With the Seller

You may be able to save money by asking the seller to pay for repairs in advance or lower the price to cover the cost of repairs you’ll have to make later. Your negotiating power will depend on the local market. It’s tougher to drive a hard bargain when there are more buyers than homes for sale. Work with your real estate agent to understand the local market and strategize accordingly.

Buy Adequate Home Insurance

Your lender will require you to buy homeowners insurance before closing the deal. Home insurance covers the cost to repair or replace your home and belongings if they’re damaged by an incident covered in the policy. It also provides liability insurance if you’re held responsible for an injury or accident. Buy enough home insurance to cover the cost of rebuilding the home if it’s destroyed.

More Posts

LEAVE A REPLY

Please enter your comment!
Please enter your name here