Home buying is a critical step in many people’s lives, but the buying process can be confusing for first-time homebuyers. There are steps to take before, during, and after you secure your home that will lead you towards success and make the home buying process more manageable.
Before Buying a Home: What to Consider
You may be eager to purchase your home, but first, you should determine the type of housing you want, how much a lender will give you, and your financial circumstances.
1. The Type of Housing. There are more options for housing than you might think, such as:
- A single-family home
- Duplex
- Fixer-upper property
- Townhome
- Condominium
The option you choose depends on your lifestyle and the number of people in your home. Are you looking for something move-in ready or a less expensive fixer-upper you can invest in restoring? You also should think about the layout of your home and browse real estate listings to get an idea of what you like and dislike.
2. Mortgage Qualifications. Explore your qualifications and options as mortgage companies may offer different loan amounts and types. Some opt for a 15-year loan, while most buyers choose a 30-year mortgage with a fixed rate. Mortgage Consultants Group can help you understand your options, such as:
- Conventional Mortgages- Can offer interest rates as low as 3%
- Federal Housing Administration (FHA) Loans- Down payments can be as low as 3.5% of the home’s price
- United States Department of Agriculture (USDA) Loans- Homebuyers in rural areas qualify for these loans, usually with no down payment.
- VA Loans- Veteran and current military members often pay no down payment on these loans.
3. Affordability. Credit score and price range are critical factors when considering a home to purchase. You will need more money than just the monthly payment on your mortgage. Other expenses for your new home might include closing costs, inspections, furnishings, transportation for moving your things, and more.
Buying Your First Home
Home buying includes finding an established real estate agent, negotiating with your seller, purchasing homeowners insurance, and scheduling a home inspection. The general timeline of the process follows:
- Finding the right home for you
- Assessing and securing your finances
- Choosing an approved mortgage lender
- Putting in an offer and completing a home inspection
- Closing on the house and moving in
After Purchasing Your Home: What to Do Next
Once you have secured your home through a real estate agent, the planning does not stop there. You should be mindful of your finances and put proper care into your home. The value of your home may increase, but it is your choice when and if you want to sell someday. Keeping an emergency fund is a smart way to prepare for unexpected expenses or circumstances.
Work with Mortgage Consultants Group for Financing Options
At Mortgage Consultants Group, we can help you determine the best choices for loan programs and monthly mortgage payments. We are home loan and mortgage experts, ready to help no matter where you are in the homeowning process. Call (916) 669-1682 for home buying assistance!
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Get Pre-Approved Today
