Preparing To Buy Your First Home
Next, make sure you are clear on how much home you can afford. Check out our calculator, which will help you determine your monthly mortgage payment, adjusting for variables such as the size of your down payment, the type of mortgage you will qualify for, and current interest rates. You can also get an official estimate by following our next tip.
preparing to buy your first home
For example, if you bring home $6,600 a month, your maximum house payment is $1,650. Now imagine you get a 15-year fixed-rate mortgage at 4% interest. If your property tax is 1.14%, home insurance is $1,200 per year, and PMI is 0.5% (for down payments below 20%), here are some home prices you could afford:
Some lenders only care about profits, while others actually care about helping you become a homeowner. Talk to at least three lenders. Compare their interest rates, fees and customer service to find the best one for your finances and peace of mind.
Want to meet an agent you can trust? Connect with the RamseyTrusted agents in our Endorsed Local Providers (ELP) program. RamseyTrusted ELPs are top-performing agents who will help you find a home that fits your needs and budget.
Here are the basic home-buying steps: Determine how much house you can afford, get preapproved for a mortgage, find an experienced real estate agent, research neighborhoods for best fit, go house hunting, make a competitive offer within your budget, finalize your financing, and prepare for closing.
There are many assistance programs on the state and local levels, including first-time homebuyer tax credits; check your state's housing finance agency. Other programs include:The U.S. Department of Housing and Urban Development funds public housing and offers vouchers for low-income Americans.The U.S. Department of Veterans Affairs (VA) has home loan programs for service members, veterans, and eligible surviving spouses.The U.S. Department of Agriculture (USDA) has a homeownership program for rural Americans.The Federal Housing Administration insures mortgages and offers downpayment assistance, making a home purchase more affordable."}},"@type": "Question","name": "What kinds of questions should you ask your realtor when buying your first home?","acceptedAnswer": "@type": "Answer","text": "You should ask your realtor questions about the technical and business aspects of homebuying. A realtor will have great insight into your negotiating options and what kinds of concessions or contingencies are appropriate for your situation. You can ask about the sales history, comparable sales in the area, and who to hire for the home inspection. Consider asking your realtor whether they would buy the home to learn what they see as the pros and cons of the home.","@type": "Question","name": "What things should you buy when moving into your first home?","acceptedAnswer": "@type": "Answer","text": "Some important purchases that are sometimes overlooked by first-time homebuyers include cleaning supplies. For example, what types of floors does the home have, and do you have the proper tools to clean them? If you're moving into a house from an apartment, you may also need to stock up on yard supplies like a lawnmower.","@type": "Question","name": "What is the tax credit for buying your first home?","acceptedAnswer": "@type": "Answer","text": "The first-time homebuyer tax credit is up to $15,000 or 10% of the home's value (whichever was less)."]}]}] .cls-1fill:#999.cls-6fill:#6d6e71 Skip to contentThe BalanceSearchSearchPlease fill out this field.
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If you're not sure you can afford a home, try sticking to a budget with what you expect your home payment will be, and put the extra money in savings. This can build your confidence and your savings strategy so you can move forward with the home purchase.
You should ask your realtor questions about the technical and business aspects of homebuying. A realtor will have great insight into your negotiating options and what kinds of concessions or contingencies are appropriate for your situation. You can ask about the sales history, comparable sales in the area, and who to hire for the home inspection. Consider asking your realtor whether they would buy the home to learn what they see as the pros and cons of the home.
Some important purchases that are sometimes overlooked by first-time homebuyers include cleaning supplies. For example, what types of floors does the home have, and do you have the proper tools to clean them? If you're moving into a house from an apartment, you may also need to stock up on yard supplies like a lawnmower.
This is a time to determine your homeownership goals. Do you need more space for a growing family? Some buyers want a yard for their pets or outdoor hobbies. Others want to invest in a home and build wealth.
Buyers have seven days after an inspection to decide to purchase or walk away from the sale. If you choose to waive the home inspection contingency in your offer, you choose to purchase the home as is. But an inspection is still recommended for your own information.
Homeownership is a journey that can start well before you ever consider pre-approval. Understanding the timeline for buying a house will help you prepare for the process and eventually buy the home of your dreams.
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Your home inspection report may reveal major or minor issues. Major problems will likely need to be dealt with before your mortgage lender will finalize your loan, while minor issues can often wait till you take possession of the home.
A final walk-through is an opportunity to view the property before it becomes yours. This is your last chance to view the home, ask questions and address any outstanding issues before the house becomes your responsibility.
How to get started: Come with your home inspection checklist and other documents, like repair invoices and receipts for any work the owner conducted, to ensure everything was done as agreed upon and that the home is in move-in ready condition.
When thinking about buying a home, consider whether you want to put down roots or maintain flexibility with your living situation. How secure is your job, and can you comfortably budget for home repairs and maintenance on top of monthly housing payments? Are you ready to stay in one place? Do you have kids or family members to consider? 041b061a72