6 Must Know for First Time Home Buyers
Good morning and welcome!
Before you begin your home buying process, you should take a look at your existing budget. Know the mortgage payment amount you will be comfortable with, then set a budget and stick to it. If your budget will nicely accommodate a monthly payment on a $350,000 home with current interest rate, you should avoid purchasing or looking at homes outside that price range. Going outside your price range will increase your mortgage payment.
That increase amount may mean, you will need to take that money from another expense, work a few more hours or constantly playing catch-up. You really do not want to put yourself and your family in that position. If you can find your ideal home for $350,000 or less, go with that. Also, just because you are approved for $350,000 does not mean you have to spend the entire amount.
Avoid looking at homes that are outside your budget. Viewing homes that are outside your budget is placing temptation in your path. Do not lead yourself into temptation and do not allow your Realtor to lead you there either. Remember, you will be the one making the mortgage payment. Not your Realtor.
If the type of home you want is not currently within your budget, you may need to give yourself a bit more time to save up more down payment to get what you want without having to settle for something you do not want. Do not let anyone talk you into something you do not want just to close a sale.
Work with a Realtor/Broker that cares about you. This is super important. When you work with someone that care about you, it means he/she will advise you base on your needs and not theirs.
If you are purchasing a home that includes going to the design center, understand their goal is to sell you as much of their inventory as possible. Therefore, you must have a firm budget in place before your appointment. Depending on the builder, you will either have to pay a certain percent of the total selection amount upfront with the rest roll into your mortgage or you will be required to pay the entire amount upfront. Speak with your lender first to find out how much, if any, you will be able to roll into your loan.
Ask questions. Lots of questions. A part of your realtor/broker’s responsibility is to guide you, in addition to answering all your questions in a timely manner. This will not be the time to be afraid to ask question. You will be making the most expensive purchase you will make in your life time, you want to make that decision with the right guidance and with confidence so you do not end up buying into a neighborhood you do not like, a house you do not love or struggle to make your mortgage payment each month.
Buying a home is a very expensive purchase that comes with a long commitment. The guidance you receive and the decisions you make during the process should be ones that you are happy with, long after receiving your keys at the closing.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
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