6 must know for First Time Home Buyers
Before you begin your home buying process, take a look at your existing budget first and foremost. Know the mortgage payment amount you will be comfortable with, than set a budget and stick to it. If your budget will nicely accommodate a monthly payment on a $350,000 home with current interest rate, you should avoid purchasing a home for $375,000, $400,000 etc., because anything above $350,000 will increase your monthly mortgage payment. An increase mortgage payment may mean, you will have to take that additional amount from another expense, work a few more hours or constantly playing catch-up.
Avoid looking at homes that are outside your budget. Viewing homes that are outside your budget is placing temptation in your path.
If the type of home you want is not currently within your budget, you may need to give yourself a bit more time to save up more down payment to get what you want without having to settle for something you do not want.
Work with a Realtor/Broker that cares about you. This is super important. When you work with someone that cares about you, it means he/she will advise you base on your needs and not theirs. You will not be ushered into making a purchase just to close a sale.
If you are purchasing a home that includes going to the design center, understand their goal is to sell their products. Therefore, you must have a firm budget in place before your appointment. Depending on the builder, you will either have to pay a percent of the total selection amount upfront with the rest roll into your mortgage or you will be required the pay the entire amount upfront. Speak with your lender to find out how much, if any, you will be able to roll into your loan.
Do not allow yourself to be forced into buying a home you do not like. Do not buy into a neighborhood you do not really want to be in. And do not accept a mortgage payment you will struggle to make each month.
Buying a home is an expensive purchase that comes with a long commitment. The guidance you receive and the decisions you make during the process should be ones that you remain happy with, long after receiving your keys at the closing. As always, thank you for reading. Until next time…Diana
Image Created by Diana for First Home Houston
