in

What are the Benefits of Being a First Time Home Buyer?

Wells Fargo Holds Homebuyers Assistance Program


Being a First Time home buyer can be a challenging experience. One has a lot of things that one has to take into account from finding the right house to financing. These are the benefits first time home buyers have. The buyer is going to have access to special loan programs that can help them to get into a house faster and less costly than those who have previously bought homes before. These programs offer buyers benefits such as low down payments, reduced interests and a limit to the amount of money that lenders can ask for.

Lenders usually expect buyers to give a down payment of as much as twenty percent. This can be a challenge to people who will be trying to buy their first home.Loans often reduce down the money to as little as three percent. A down payment which is that low makes the purchase easier. These loans also have a limitation on the fees that one can charge. Just like the reduced down payments, this is made possible by government mortgage insurance that are readily available to new buyers. For an annual premium, your mortgage will be insured reducing the risk to the lender. This will result on one’s ability to ask fr less money while still remaining profitable.

Low income buyers can also qualify for reduced interest programs. This means that a third-party will settle the interest on your loan. These programs make the mortgage payments to be more affordable and also one can clear off their loan faster. While the government is one of the most frequent subsidizers of loans, they can also be reduced by charities, individuals and organizations. These programs are only available to people who will live in the house they buy as their main residence. The house has to be in top-notch condition with no presence of safety hazards. Due to the fact that these programs are meant for those in need, there is some limitation of the value of house that you can be able to buy through this program.

It is therefore essential for one to take advantage of numerous programs that first time buyers have to help them own their dream home. From reduced down payment to subsidized interest,home ownership has now become more affordable.There is no time like the present to make the dream of owning your own house to become a reality. First time buyers need to do a few things before making the purchase. It is advisable for one to start saving in advance. Having money will make it easier to apply for a wide range of cheaper mortgages.

You need to be sure that you can settle your monthly repayments. As a buyer, you have to asses yourself to know if this is a step you can afford. It is vital that you have a budget before you start looking for properties. When you apply for a mortgage, the lender will check to make sure that you can afford the mortgage. They will also stress check your ability to make payments in the event interest rates were to increase or if your circumstance changed. As part of any mortgage application process, you will need to show the lender evidence of any outgoings and also proof of income.

Know the type of house that best suits you. When it comes to purchasing a residential property, you have several options which include a condo, single family home, multi family building with two to four units. Each option has their own pros and cons depending on your home ownership goals therefore you need to know which property will help you reach those goals. You can also save on the purchase price in any category by selecting a fixer upper although the duration it will take and money that is needed to turn a fixer upper into your dream home might be a bit more than what you bargained for.

It is essential to have an idea of specific features that will be ideal for your home. While it is good for one to retain some flexibility in this list, you might be making the biggest purchase of your life and you deserve to have that purchase fit both your wants and needs as closely as possible. Your list should also include basic desires such as size and neighborhood to smaller details such as layout of the bathroom and kitchen.

Know who will help you to find your ideal home and guide you through the purchase process. A real estate agent will help you locate homes that meet your needs and those that are in your price range and then meet with you to see those homes. Once you have chosen the home to buy, these professionals will help you to negotiate the whole purchase process which includes making an offer, getting a loan and filling out the paperwork. The expertise of a good real estate agent will protect you from pitfalls that you might face during the process.

A realtor is knowledgeable on the amount of money you should offer for the house along with conditions that you want to ask for such as having the buyer pay for your closing costs. The agent is then going to present the offer to the agent of the seller and they will either accept it or counter offer. You can choose to accept or go back and forth until both of you reach an agreement. Upon reaching an agreement, you will then be required to make a good faith deposit and the process then moves to escrow. This is a short time period usually of around thirty days when the seller takes the house off the market with a contractual expectation that you will buy the house.

Owning a home is a dream that a lot of people have and when your time comes for that dream to be a reality, you should be well informed. Above information should enlighten you so that you make the right decisions.

Photo by Joe Raedle/Getty Images

Written by Brian McCaw

Brian is a lover of all things real estate including photography, architecture, news, and so much more.