Buying a home is a major part of the American dream. But for first-timers, it can be daunting without a housing expert’s opinion. Before you make the plunge into life as a homeowner, take some advice from people who have done it.
Click through and get some free advice for first home buyers.
Tip No. 1: Take Time to Save
FHA loans only require as little as 3.5 percent down to get you into your new home. They might even offer down payment assistance.
The catch comes in the form of PMI — or private mortgage insurance — which FHA buyers are required to carry for a minimum of 11 years. PMI can take years to pay off, so your finances need to be ready.
Tip No. 2: Study the Market
Knowing the housing market can pay off, so investigate the area you want to live. Study the housing trends, time your buy strategically and admire the savings you’ve accomplished.
During your research, be sure to look at the best and worst places for first-time home buyers.
Tip No. 3: Shop Around for Lenders
You’re not stuck with the first lender you speak with. Comparison shopping also applies when it comes to home loans — so be sure to obtain as many loan estimates as you can.
Compare interest rates, fees and estimated monthly payment amounts to find the best overall deal.
Tip No. 4: Buy Beneath Your Means
Decide how much house you can afford, then think lower. It can’t hurt to have an extra padded margin in your monthly budget.
More money in your savings means more funds for emergencies and fewer headaches to worry about.
Keep reading about things first-time homebuyers should do.