There are few things more exciting, and often terrifying, than entering the world of homeownership. After months of binge watching HGTV and stalking house listings in your area on Zillow, you’re ready to take the next step. However, many don’t know what that next step is.
Fear not! We’ve put together a comprehensive list of everything you need to know. We’ve researched the most frequently asked questions from first time homebuyers like you. Check out these questions and get answers you need.
1. What is the first step I should take in buying a home?
For many individuals making the decision to buy a home, their first move usually involves logging on to a listing site and looking for a house. This is not always the best decision. Finding a home before you make a budget and get pre-qualified or approved is setting yourself up for disappointment. Nothing’s worse than finding your dream home and realizing its thousands of dollars over what you can actually afford. So, first step; get pre-approved.
2. How much can I afford?
This question is somewhat answered above. Getting a pre-approval will give you a fairly accurate figure of how much home you can afford based on your financial situation. However, there are other personal factors you may want to consider. Check out our mortgage calculators to help you determine how much you can expect to pay each month.
3. What are all of the out of pocket costs?
The upfront costs of buying a house can get pretty pricey. Preparing and taking time to save is important so that you can have a smooth sailing process. The costs include your down payment, earnest money deposit, home inspection costs, appraisal costs, and closing costs.
4. Should I use a real-estate agent?
Getting help from a real estate professional isn’t required, but it will almost always save you stress and money in the long run, especially for a first time homebuyer. Whether you’ve bought one house or ten, real estate agents have helped hundreds and they’ve dealt with nearly every scenario.
Check out our article on reasons to use a real estate agent.
5. How do I get a mortgage loan?
Obtaining a mortgage loan seems like a big scary ordeal, but it doesn’t have to be! Thanks to online mortgage lenders like AmeriSave, the mortgage process can be simple and straightforward. Get started with us today!
Your credit score is used to determine your credit worthiness to a lender. This can impact the rate that you receive on a loan or if you can receive a loan at all. Get your free annual credit report and start working on improving your score as soon as possible.
7. How long will I need to live in a home in order to not lose money?
There is no set time limit; however, it is wise to look at homeownership as a long term investment. On average, most homeowners stay in their first home for at least 5-7 years.
8. How long does it take to buy a house?
Like the above answer, there is no set time. Variable factors can determine the length of time it takes to go through the application to closing process. Check out our post on the mortgage process to get a better idea of all the steps involved. Remember, no two processes are the same. Comparing how long it takes you to buy a home to how long it took your friends or parents will most likely yield inaccurate expectations.
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