Mortgage Basics
You've made the decision to make one of the largest investments you'll ever make in your life-buying your first home. You're excited, but at the same time anxious. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Can I get a home inspected before I make an offer?
Rest assured, you are not alone. According to a National Association of REALTORS Profile of Home Buyers and Sellers, first-time homebuyers recently accounted for 40 percent of the homes purchased. The home buying process can be overwhelming, but if you go into it prepared, your first purchase can be a good experience. Here are some things to consider before making the plunge.
Getting a mortgage
Fear of being rejected for a home loan, you may want to get pre-approved. This will help you feel more confident, plus it will also give show sellers that you are a serious buyer and it shortens the purchase process.
Mortgage Payments
The costs involved in the purchase of a home can appear overwhelming to first-time buyers. Your Prudential agent can help you calculate out how much they you be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.
Down-Payment
The down-payment amount varies from 0 to 20% of purchase price, and varies depending on the value of the home you choose and your mortgage lender. Many government-funded programs for first-time buyers that help people buy a home with no down payment. Your Prudential Unlimited Realty agent will be able to explain the different options available to you.
Closing Costs
First-time buyers often forget to consider the closing costs when making an offer on a home. When you get pre-approved, your lender will give you an estimate for your planning purposes.
Making offers
Don't feel pressured into making an offer on the first home you see. Attend open houses and see multiple properties with your Prudential agent to get a feel for the marketplace. When you do decide on a home to make an offer, work with your real estate professional to get all of your questions answered first before making an offer. But don't procrastinate too long; homes don’t stay on the market forever.
Condition of the Home
Avoid buying a "problem" home by hiring a professional Massachusetts licensed inspector before making a serious offer. Know what you are getting into, and work with your agent to have the offer price adjusted to reflect expected repairs.
Above all, remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your Prudential Unlimited Realty Buyer Agent can be an invaluable asset in helping you make educated decisions so that your first-home purchase is a rewarding experience.