You’ve been renting for what seems like an eternity, all the while pinching pennies and crossing your fingers. As the numbers on your savings account slowly climb, you begin sneaking side glances of homes for sale that you dream you could buy. You may even decide it’s finally time to call it and start actively looking for your new home.
If this sounds like you, you need to pause the process and pump the breaks! Here are 12 things every first-time homebuyer needs to do before purchasing a home.
The Financial Side of Buying a Home Save for a Down Payment
Many renters save for so long because they believe they need a 20% down payment before they can buy a house. While a 20% payment ensures that you won’t be paying for mortgage insurance, you aren’t disqualified from purchasing a home if you don’t have that much saved. There are several loans that allow you to put a lesser amount down. There are even programs that offer down payment assistance or g! ...
If you’re a first-time home buyer, you may have realized that the check that you hand over to your landlord for rent each month is as much or more than a mortgage payment. Knowing this, many in your shoes pack up and start searching for a house to buy.
But there is more to paying for a house than sending in your mortgage payment each month, and these fees tend to sneak up on homebuyers if you aren’t aware of them. Some of these fees are avoidable; some are not.
Here’s how to avoid hidden fees when buying a home.
Know Your Loan
If you are using a loan to buy your house, consider each of your options carefully. Some loans offer low or no down payment but compensate for it in the loan somehow.
For example, FHA loans are great for first-time homebuyers who don’t have a 20% down payment or who have a lower credit score. This loan has helped many people become homebuyers who wouldn’t be able to otherwise. This loan has hidden fees, though, that . ...
Help us find your dream home
We just need your phone number to finish creating your account.