Things First Time Buyers Need To Know – If you are a first-time buyer getting ready to purchase a home, this article is for you.
I’m going to tell you why you need to save at least 10% off the purchase price in cash “money in the bank” and how to calculate it, BEFORE you start shopping for a home.
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Things First Time Buyers Need To Know
Most first-time home buyers want their mortgage payment to be similar to or slightly higher than their rent payment.
Tips For The First Time Home Buyers
In the calculator, increase or decrease the purchase price, increase or decrease your down payment, until you get the mortgage payment you want.
As you can see, with a 10% down payment, with existing interest rates (October 2022), my mortgage payment is $3,388 at a purchase price of $500,000.
So now I understand that with 10% down, I can achieve my desired monthly mortgage payment with a property purchase price of $500,000.
In most cases, closing costs would be well below 2%, but 2% is safe and leaves no room for error.
Questions First Time Home Buyers Should Ask
Reason #3 – The remaining 3% would go towards cleaning the house, updating it, furnishing it, leaving room for emergencies, and ensuring your bank account isn’t completely dry when you move in. Like most buyers, put all their savings toward purchasing their first home and don’t have much money left in the bank.
Reason #4 – A buyer who can put down 5% as a down payment would meet the conventional buyer criteria, which appears to have greater appeal to sellers and listing agents. Buyers who put down less than 5%, i.e. FHA buyers, or even VA buyers, tend to have strict appraisal policies.
Buying or selling a home can be a complicated task, schedule a free consultation with our team today and let us help you. When we bought our first house in 2012, we had very little idea what we were getting into. There are some things first-time home buyers need to know.
Whether you’re considering a building for renovation, an older home, or a brand new spec home, there are a few common things you should keep in mind.
Options For First Time Homebuyers [infographic]
If the market is a buyer’s market, you will have a little wiggle room. Be sure to let your agent know what your budget is and check in with them often to get their opinion on homes you think might be slightly over budget.
If the market is hot (or a seller’s market), you’ll want to look at homes a little below your budget to account for bidding wars, otherwise you’ll likely lose any homes you’re attached to.
Low-balling gives you a bad reputation. Real estate agents (and sellers) remember buyers who do this. There’s probably a 10% chance that you’ll get lucky and land a house you like, if the owners really need it. However, if you don’t, or your deal falls through, you won’t want to damage that reputation.
Now, this does NOT mean you should pay crazy amounts of money for a house that isn’t worth a fraction of what they are asking.
Helpful Frequently Asked Questions From First Time Home Buyers
Our third repairman was originally listed for $125,000. At the time we found it, it had been listed for a year and was down to $99,900.
This house was extremely run down, hadn’t been cleaned in probably decades, the carpet was dirty, old and matted. All the walls had so many layers of dirt and grease and who knows what else. It would NOT come off and we ended up painting over it. It was
The huge porch and stairs had no top floor. The roof needed to be replaced immediately, the gutters were in poor condition, the siding was missing in places throughout the house and concealed years of massive rot. All the windows were old and the upstairs windows had black mold behind the screens.
The last “update” of the house was probably in the 60’s/70’s. Kitchen cabinet doors were falling off and appliances were old and/or broken.
Guide For First Time Home Buyers
It was built before 1875 (that’s when records “began” for our area and it was built before then), and the bones were still good.
You need to calculate the cost of repairs and go from there.
Sometimes sellers/real estate agents set prices WAY too high in hopes of an ignorant buyer. These are the ones who work with you to make the sale or who stay in the market and never sell.
Basically, if they’re priced well compared to other comps in the area, you might be able to move around a bit, but
First Time Homebuyers, For Sale, Real Estate, Florida
I’ve known many friends who were afraid of what their real estate agent would think if they brought a parent with them.
Guys! This is you signing your name, promising to make on-time payments on this house for the next 15 or 30 years. You do what is necessary to make sure it is the wisest decision to make.
PLEASE do not overlook the wisdom of bringing with you to the viewings someone older and wiser in the homeownership game.
We brought my husband’s parents to every house we purchased BEFORE we bought it. And many in between.
Buying Or Selling A Home Archives
My father-in-law is a jack of all trades, like my husband, and they have worked together on many car, tractor and house projects. He was able to go through the bones of the house with us and point out items we might have overlooked. And Mom brought another perspective of design and another reality check.
We have surpassed many houses thanks to their contribution. But thanks to this contribution, we had THREE strong, safe homes that we loved.
If you don’t have a knowledgeable relative or friend who can look at the bones of the house and tell you if something is seriously wrong, definitely pay for the inspection.
First of all, it was built in 1930, and although it was only 1,300 square feet, it had at least two separate additions. The inspection company listed nearly 100 problems.
What Home Buyers Need To Know About Listing Photos
Anyone who has owned a home for a while understands that these things come with the territory.
If you expect the current owner to “fix” all of these things, you have a 99% chance of losing the house.
Wait until you can afford to buy a new home and do the inspection anyway. If there are any errors in listing a brand new home, you are in a much better position to correct them.
If the builder won’t fix moderate to severe problems, LEAVE THE HOUSE.
First Time Home Buyer Tips
It can be scary buying your first home. (This is where the older, wiser adult comes in).
More often than not, it is a good idea and a good investment to buy a house. Just make sure you make wise decisions and have wise people on your side. And have a good ride!
Comment below if you have any questions or tips to add for our first-time homebuyer readers!
Follow us on Instagram and sign up for our email list so you don’t miss out on all the fun! And who knows, maybe you’ll be inspired to call a repairman too! Buying your first home is an exciting time. The best way to make your job easier is to be prepared. At Gardner Moving, we’ve put together some tips and tricks you need to know when purchasing your first home.
Tips For First Time Car Buyers
From your credit score to your down payment options for your new home, you need to consider a variety of factors before purchasing your first home.
Even though you don’t think about this three-digit number often, your credit score plays a major role in the home buying process. Your credit score will determine whether you can get a mortgage and will affect the interest rates you qualify for. Learn your credit score to get an idea of where you stand with lenders and whether you’ll need to improve your score before applying for a mortgage.
Your down payment is the money you pay upfront for the purchase of your home. Lenders offer a variety of mortgages with different down payment requirements. Many states, counties and cities offer homeownership programs that combine low-interest mortgages with down payment and closing cost assistance.
Be sure to research your state or city’s programs to see what assistance options you have and how much you’ll need as a down payment to make sure you’re ready.
We Just Got Our Inspection Report. As I First Time Home Buyers We Are Not Sure How Or Which Items To Negotiate. Should We Get Seller Concessions Or Have The Seller Fix
When shopping for a home, you’ll want your housing expenses to be no more than 28% of your gross monthly income. It shouldn’t cost more to pay your property taxes, mortgage and home insurance each month.
You should also consider your debt-to-income ratio (DTI) to determine what you can reasonably afford. DTI is determined by how much of your gross monthly income goes toward paying your debts, including housing costs, student loans, car loans, credit card payments, and more. 36% or less is considered a good DTI to qualify for a mortgage. A lower DTI is better, making it easier for you to budget for emergency expenses and helping you compare home loans.
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