Is this your first time buying a house? This can be very stressful to figure out without helpful tips. There are many myths about buying your first house and things people say you have to do. Don’t let these things hold you back from house hunting. Your monthly payments might even end up being about the same or cheaper as your rent payments, so why not put your monthly housing payment towards paying a place off instead? A few tips for first time buyers are to start saving early, see if you qualify for a loan sooner than later, decide what features you want in your house, and apply for first time buyer advantages.
The earlier you start saving, the better you’ll be off. Houses aren’t cheap, and the more you can put towards your down payment, the lower your monthly mortgage will be. While homes are expensive, don’t let that stop you. Saving isn’t as hard as it may sound. You don’t have to move large numbers into your savings account. Even just cutting back on daily coffee can build your savings. Most employers will allow you to even send a percentage of your income straight to a savings account, so you automatically save without even thinking about it. The sooner you start, the easier it will be to pay for a house.
Check if You Qualify for a Loan
It can be easy to assume that you don’t make enough and wouldn’t qualify for a bank loan. That sounds like you have to be making a ton of money at your job and never missed a payment. But that’s simply not true. Instead of waiting until you think you might qualify, it doesn’t hurt to check sooner rather than later. For some places, it doesn’t cost anything to check if you qualify. The best case scenario would be that you do qualify, and you have a 20% downpayment ready. The next level would be qualifying but at full finance and not having a 20% downpayment. And the worst case would be not qualifying, but you would at least know what you have to do in order to qualify and are still one step closer to buying a house.
Decide what is important to you in a house. House shopping goes so much smoother when you know what you’re looking for, same as any form of shopping. More excellent features will make the value of the house go up, so make a list of the bare minimum of what you need and see if you can afford extra features, such as a second bathroom or bedroom. This will keep you from going in blind and moving forward on a house that you can’t really afford but were advertised into buying.
First Time Buyer Advantages
can get a lot of advantages that others can’t. There are tax breaks, loans that are federally backed, and programs through the state. To qualify, you have to have less than the 20% minimum down payment. There are extra monthly fees if you go this route, but you can have a house sooner than if you waited for the 20% down payment. Before deciding to do this, make sure that you can afford the monthly payments and consider if moving into your own house or saving your money is more important to you.
As stressful as buying a house can be, remember that there are plenty of ways to cut back on the stress so you can actually enjoy your house once you have it. No one can deny that it is a long process before you step into your home as an owner, but it is definitely worth having control over your living situation. Make sure to not cut corners, and it is vital to do your research. Start saving long before you plan on buying a house, but if you haven’t done that, it’s not impossible to still buy a house. Check if you qualify for a house loan sooner than later. Make a list of what home features are deal breakers for you. And don’t forget to look into first time buyer programs. Enjoy the exciting journey of owning your own place!