Helpful tips for First-Time Home Buyer
Dated: July 17 2020
Buying a home is a big step, especially for a First-time home buyer.
However it's not as scary as it's made out to be if you take the time to research and plan ahead.
You'll want to start off with looking at Mortgage options and your qualifications on how much home you can affort, and go from there.
Typically it's common to make sure you have enough money saved up in order to put a down payment on a home. A 20% down payment provides that you will not pay an additiona mortgage insurance premium in your monthly payments. Lenders now permit lower percentages and will allow first-time home buyer to put as little as 3% down. But it's importaint to keep in mind the lower the percent the higher cost and paying for mortgage insurance may be when calculating your expenses.
There are many mortgage options available, if you are struggling to come up with a down payment, you can always check out some simple loans to get you started.
- Conventional Mortgages; These are standard set by government sponsored companies such as Freddie Mac and require as little as 3% down.
- FHA loans; These are insured by the Federal Housing Administration, these loans require a down payment of as low as 3.5%
- VA Loans; Loans are guaraneed by the Department of Veterans Affairs, in some cases require no down payment. As a veteran, it is your right to get financing for your home.
Mortgages come in different timeframes. You can get a 30, 20 or 15 years. Talk to your lender and ask lots of questions about how much it all will cost you.
Be Sure your credit is in check before applying for a mortgage. Dispute any errors that could be negativly affecting your credit and look for ways to improve your score by paying off any outstanding debts.
Once you have your mortgage situation in line, it's time to start doing the biggest part of all, finding the right home for you.
This starts with finding the right Buyer's agent. You'll be working with a real estate agent night and day so it's importaint that you find someone who fits well with you and has your best interest at heart. At Berkshire Hawthway HomeServices Myrtle Beach Real Estate, we have highly skilled Realtors who are motivated and have excellent knowledge about the Myrtle Beach and all surrounding areas. We don't just sell the beach, we cover the entire Grand Strand area!
Picking the right house for you may take time. You always want to research the area, local schools, the closest hospital, grocery store, and other amenities you may be interested in. Drive around the neighborhood during different times of the day to check out traffic, noise, and activity levels.
Working with a Realtor can save you time and help you get the best price when purchasing. It's what we do, all day, every day. We often have knowledge of home coming into the market, as we work with all the area builders to ensure our clients needs are met.
There are a couple of mistakes to avoid while making the big decision to purcase a home.
Be sure you are making a budget for closing costs, you'll need to plan ahead for home owners insurance, flood insurance (if needed or wanted) home inspections and title searches. Closing costs usually run between 2% and 5% of your loan amount.
Put aside some extra money for moving expenses too, such as a truck or a storage unit for your belongings while you are moving. Also be aware of new furnishings, appliances and updated fixtures you may want to purchase for your new home! (But please, no new or big purchases or taking on new credit while you're going through the morgage process, it can STOP your purchase!)
During the home buying process, theres always room for negotiation (depending on market conditions). Are there major repairs you can get the seller to fix themselves or giving you a credit adjustment at closing. Is the seller willing to cover any of the closing costs for you? All of these items adjust based on inventory of homes, multiple offers, or the seller not willing to participate in taking less for their home than they are asking. It's called negotiation and it's what we do every single day as Realtors.
Becoming a first time home owner may be daunting but it doesn't have to be with Berkshire Hathaway HomeServices Myrtle Beach Real Estate Realtors by your side!
We are here to help, give us a call at: 843-449-9444
Marvin Heyd is the Broker In Charge at Berkshire Hathaway HomeServices Myrtle Beach Real Estate. Marvin has been actively involved in all aspects of Real Estate during his career, from residential de....