Buying a home for the first time can feel like diving into the deep end of the pool without knowing how to swim. While this was once the case, realtors and lenders alike have started moving towards more transparent lending practices to make sure as many details as possible are provided. That being said, there are still some things you’ll want to make sure you know before scheduling an appointment to sign mortgage papers.
Consider the Full Cost of Owning a Home
The purchase price of a home is only the cost of the property and building itself. While this accounts for a majority of large purchases needed for the home, it’s important to remember that you are now responsible for all maintenance, repairs and upkeep. First-time home buyers may be caught off-guard when it comes to how much home repairs cost as their landlord previously handled them as needed.
Another factor of cost is that purchasing a home is a contract based purchase, requiring agreements to be made with the lender regarding monthly payments, down payment amount and the inclusion of private mortgage insurance (PMI) on conventional loans as required. It’s important to take a step back and see where you are in life and where you’re heading to make sure the commitment of a home mortgage fits in.
Stay Within Your Means
When shopping around for a mortgage, most lenders will provide you with the maximum amount you could qualify for after an initial credit check and financial deep dive. While it can be tempting to take the most possible thinking it’s an investment as well as a purchase, putting yourself into a hard financial situation can make enjoying your new home difficult.
Getting a loan of the right amount for the sake of purchasing your home means monthly payments that fit into your budget. This leaves room for cosmetic changes, furniture, small repairs or any other trailing expense you may need to cover shortly after moving in. Living “house poor” means that your mortgage payment is eating up any extra income you may have.
Knowing this can stress the importance of working with a lender that is compassionate about getting you the perfect home to fit your lifestyle and financial goals. Plus, having extra wiggle room at the end of each month means your emergency savings can stay completely untouched for small purchases needed.
Think About Your Future
Purchasing a home is a financial and time commitment that takes years before you’re able to sell or move on without taking a loss on the property. If you plan on starting a family then getting a home with extra rooms may be worth the higher cost in the mean time rather than going through the selling and buying process all over again.
Another factor is your career and how important the location of your home is in regards to advancement. Remote workers can live wherever they wish, but traditional workers may need to remain local to be available outside regular office hours.
Whether you’ve chosen to get a new home or are looking to plan out your very first purchase, our team of expert lending agents is ready to help you find the home that compliments you and your life perfectly. Take a look out our services and team today or give us a call at 855-421-2753 with any questions you may have.