Buying a home is a huge moment in your life, and for your bank account. In all the excitement, it is helpful to have some clarity and guidance to assure you are heading in the right direction. Direct Mortgage Loans is always available to answer your questions and guide you through the process. Contact us to begin working with a Loan Officer. In addition, here are 6 things you must know BEFORE you buy your first home.
Consider the Loan Type
When buying a home, you will most likely take out a mortgage loan to finance it. Your lender will guide you through the process to help you find the best solution. It is important to know that there are different loan options. For starters, consider whether a conventional loan or an FHA loan would work best for you.
Calculate Property Taxes
Before home buying, calculate your property taxes. In addition to the mortgage payment, a borrower will pay property taxes. These can add up, so it is important to consider these before purchasing a home to make a realistic monthly expense! Homebuying should be comfortable; do not put yourself in a position that you cannot comfortably afford.
A HOA fee is a homeowner’s association fee. Before purchasing a home, learn if the property is within a homeowner’s association. If it is, you’ll have to pay a homeowner’s association fee. If you are required to pay this, this is an extra expense that can add up. Click to learn more about the pros and cons of an HOA.
Follow-Up on Home Inspections
Getting a home inspection is part of the home buying process. Many times, people rely on the seller’s words that a home inspection is completed. Regardless, follow up with the home inspection. The home inspection will assure you the home is safe and ready to live in and notify you of anything that must be fixed prior to closing. You do not want to skip this as it can get costly to repair the home up to standards after closing. Once the report is completed, thoroughly review to ensure you are up to date on any necessary updates that must be made to the property.
Get Multiple Quotes
When it comes to home repairs, always get multiple quotes, even if you think the first one is a good deal. Shop around to ensure you are selecting the highest rated contractor, at a market price. By receiving multiple quotes, you will know whether the prices are valid. While this process can be time-consuming, it will help you ensure you are making the best decision when selecting a contractor.
DIY It Out
When considering modest home repairs, also consider undertaking the do-it-yourself approach. Many times, simple repairs can be fixed on your own, which may save you a lot of money. Utilize YouTube videos, blog posts, and other sources of information to consider doing the repair on your own.
All in all, homebuying is exciting, a great investment, and costly. There are some rookie mistakes to avoid that will save you money and help you to be prepared for certain costs! If you are buying your first home and want to be confident and knowledgeable, enroll in our free online homebuying course!