Tips For First Time Homeowners
Buying your first home is an extremely exciting experience! When looking for single family houses for sale, your realtor can help you find the best house for you and your growing family. Follow these tips to make buying your first home the best experience possible.
Find the Best Home Loan for You
Finding the right home loan is arguably more important than the home you pick. First, get your credit in order and then prepare to shop around. Next, understand the two different types of mortgages available to you: fixed-rate mortgages and adjustable-rate mortgages. Fixed-rate mortgages guarantee the same interest rate for the duration of your loan. Adjustable-rate mortgages will start low and then raise with time. Finally, you'll need to decide how long of a mortgage you want. The longer the term of the loan, the more you will end up paying interest.
Figure All the Costs
Even when you think you've thought of every possible cost, there's always something you forgot! This is especially true when buying your first home. Here are some of the commonly forgotten about expenses when it comes to buying a house:
Be prepared to hire movers from your current residence to your first home. You also need to consider the cost of moving any new furniture that you purchase. Gets quotes before you move so that you know what to expect.
Property taxes are generally reduced for the first year. Unfortunately, they will go up after that. Be prepared for the increase in property taxes after the first year. The tax amount will vary depending on the value of your home and your location.
- mortgage insurance
It's suggested to pay 20% down on your home. If you can't afford that, you may be required to get private mortgage insurance that ensures that you will pay your mortgage. This can be anywhere from $50 - $100 every month. While it is suggested to put down 20%, 48% of first time homeowners put 5% or less down.
Get an Inspection
Always get a house inspected before you buy. This will help you prepare for any repairs that the house may need now or in the future. Things to definitely get inspected include:
- HVAC system
- plumbing system
- electrical system
- walls, ceilings, floors
Getting a thorough inspection will help you during the negotiation process, and you can plan for future expenses accordingly.