3 Things First Time Home Buyers Need To Know
3 Things First-Time Home Buyers Need To Know
If you're buying your home, there are 3 key things you need to be aware of before taking on this huge life milestone. Trust me, being prepared will save you a lot of headaches down the road!
But with some preparation, this process can be made a lot easier.
1. There's a difference between what you qualify for, and what you can afford.
-That means, when you're applying for a home loan, the bank may approve you for a larger loan than what you're actually comfortable with paying each month. Just because you qualify for a specific price range, doesn't mean you should spend the maximum amount. Buy within your means so you do not house poor and struggle to make ends meet.
It's important that you know how exactly a mortgage works before you purchase a home. The rule of thumb is to compute for your total monthly obligations not exceeding 1/3 of your income.
2. There are lots of different types of loans (so explore them all!).
-There are loans with low down payments, loans with no down payment, government-backed loans.. the list goes on. Do your research and find the best loan for you and your financial situation.
Not all loans are created equal so be sure to compare and contrast before making a decision. This is another good reason to get an agent- they can help guide you through the loan process and help find what's best for your unique circumstances.
3. Owning a home comes with a list of unexpected expenses.
-With owning a home, it's important to have an emergency fund to cover any and all unexpected repairs or maintenance that may come up. From a broken water heater to a leaky roof, these things can add up quickly and be very costly.
It is important to be aware of the potential for expensive repairs or maintenance before you purchase a home. Have an emergency fund saved up or create a budget to help cover these potential costs.
Buying a home is a huge life milestone, and with some preparation, it can be a very smooth process. Be aware of what you can afford, explore all loan options, and have an emergency fund ready for any unexpected repairs or maintenance. These three key tips will save you a lot of headaches.
We hope this video was helpful. If you have any questions, please contact us; we would be happy to help! we love to be Sacramento's number 1 Real estate Resource. Thank you for watching and we'll see you next time.