Are you ready to fulfill your dream of becoming a homeowner? Purchasing your very first home is an exciting experience, but many soon-to-be homeowners simply don’t fully know what to expect. In today’s article from lending professional and loan officer Sonia Krietz, we’ll explore a few things that a first-time home buyer absolutely must be sure to do in order to enjoy a smooth home buying experience.
Determine Total Monthly Housing Expenses
It’s important that a first-time home buyer crunches the numbers to determine their total monthly housing cost. The monthly mortgage payment is just one of several monthly expenses you will need to take into consideration.
You’ll also need to factor in the cost of homeowner’s insurance (which is typically required as a term for your mortgage) and property taxes, which can be considerable depending upon where you live and the size of your new home.
These are key costs that you will need to factor into the equation to ensure that you can afford your new property. According to Fannie Mae, a first-time home buyer (and all other home buyers, for that matter) should spend no more than 28% of their income on housing-related expenses.
Determine Closing Costs
It’s important that a first-time home buyer understands that there may be some significant closing costs that will need to be included in the home buying budget.
Closing costs are due at the time when the transaction is completed (or “closed”). These fees can include taxes, lender fees, escrow fees, title and settlement fees and pre-paid homeowner’s association dues, among other things.
Choose the Right Realtor
The right real estate agent can make all the difference when it comes to finding your new home sweet home! Many first-time home buyers erroneously believe that only sellers need a real estate agent. But sellers can also benefit significantly from retaining a buyer’s agent to help you find the perfect home and to represent you and your best interests in the real estate sale transaction.
In fact, a buyer’s agent can play a key role when buying a home, as the Realtor can represent your interests during negotiations, while watching out for you to ensure that all decisions are in your best interest.
Get a Home Inspection. Always.
A home inspection is sometimes viewed as “optional”, which is rather curious considering that the first-time home buyer is making the single largest purchase they’ve ever made. So it makes sense to know exactly what you’re buying, right?
When buying a home, it’s easy for the layperson to overlook the subtle signs and symptoms that may indicate a serious problem. From mold and water damage, to termites, structural flaws and beyond, there are many different problems that may be present in the property. There are few things worse than buying a new home only to discover that there is a major problem that will cost tens of thousands of dollars to remedy or repair.
It’s essential that you retain the services of a home inspector to perform a thorough evaluation of the home, identifying any and all problems that may exist. The results of the inspection can impact your offer quite significantly.
Loan Officer Sonia Krietz is Here to Help a First-time Home Buyer Like You!
If you’re ready to get a home loan, wish to refinance a mortgage or need help with credit repair services before you obtain a new loan, contact lending professional and loan officer Sonia Krietz, with Security National Mortgage Company. In addition to offering mortgage loan lending services, Sonia can also guide you through the process of repairing your credit and maximizing your FICO score so you can increase your chances of not only getting approved for a mortgage, but you may also be eligible for a lower interest rate!
First-time home buyers may also wish to learn more about the difference between pre-qualification and pre-approval for a mortgage loan, along with what factors impact interest rates.
You may wish to complete the pre-application form and Sonia will be in touch to help you proceed through the process. If you have any questions or concerns, you can also contact Sonia Krietz by phone at 916.385.9716.