Five thoughtful tips for first time home buyers that everyone should use.
- A some what forgotten cost to the buyer are the costs of closing the transaction. There are extra costs in purchasing a home. You need to set aside enough for closing costs. These cost may include fees for an attorney, a title search, title insurance, taxes, lender costs and some upfront housing expenses such as homeowners insurance. The amount a buyer will pay in closing costs varies based on the size of the loan and local taxes and fees, but a general rule is that they average 2% to 5% of the purchase price. Although it’s common to put 20%, the amount you decide to pay upfront varies. We understand that even a small down payment can be a hefty amount. For example, a 5% down payment on a $250,000 home is $12,500. If you’re not quite making the salary you’re expecting to make, first time home buyer programs allow as little as 3% down. However, keep in mind that a smaller down payment means higher monthly mortgages.
- We recommend using an online mortgage calculator to help you navigate your preferred monthly payments. Using budgeting apps such as Nerd Wallet will also keep you on track aligning your financial goals.
- Your overall credit score will be one of the most important factors in mortgage lender’s decision on wether you qualify for a loan. Reduce or pay off any debts or loans you are making monthly payments on. The lenders are more likely to give a better rate on your home loan and a clean slate makes it easier to identify your ideal payment amount. Decreasing the amount of debt you owe is a great way to increase your credit score. A study conducted by Credit Karma foud that the average credit score among home buyers between 2017 and 2018 ranged from 622 to 730. Over a 30 year loan you could save thousands of dollars simply by having a better credit score and a lower interest rate as a result.
- We understand that giving up your weekends to spend them looking at dozens of homes back to back can be tiring, but trust us it’s worth it. By attending open houses you’re able to use your imagination to see yourself living in one type of home or another. Take notes, if you look at many houses you will benefit from having notes help compare one house from another. Attending an Open House more than once at a property also shows interest and the seller can become more inclined to offer you more incentives to help close the deal.
- The main reason to buy is to secure your home in a neighborhood you want to live in without the worry of being priced out in the rental market. Choose the location based on where you actually want to live. Being nearby grocery stores, restaurants and stores allow you to decrease your spending in transportation costs and make for a convenient location.
#entarispowerful #firstimebuyers
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Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.