Purchasing a house for the first time can feel like a daunting task. Navigating the process doesn't have to be a challenge, though, as there are many first time home buying services out there. It's good to understand the basics, and here are three tips that many first time home buyer specialists share with the folks they serve.
Know the Programs
There are many agencies out there to assist buyers, and that means you should have a list of possible options to explore. Two of the biggest ones are Fannie Mae and Freddie Mac, which are not-for-profit corporations that assist buyers, especially people with good credit. Veterans and active military service members may want to consult with the VA about getting loans. HUD and the Federal Housing Administration can also assist people with low credit scores or distressed financial situation. Even the USDA offers assistance to buyers in low-income, rural regions.
Understand the Process
Picking a house and concluding the sale requires a legal process that includes payment and the transfer of the title to the property. Along the way, it's critical to establish that there aren't any outstanding liens against the property, and you should also make sure a clear title can be produced.
A lot of fraud involving real estate centers on jerking people around during this process, and it's wise to talk with first time home buyer specialists to learn what specific issues may apply to your situation. You may also need to engage the services of a real estate attorney to deal with the paperwork and finalizing the closing process.
Lining Up Financing
Regardless of how you finance a house, it's best to line up financing before you start searching. Contact a loan officer at your bank and explain your goals to them in detail. Your goal is to get an exact number you can work with as a buyer. It's also wise to finance a bit of overhead to deal with things like repairs, remodeling, and fees.
One thing that can be very helpful when lining up financing is offering a down payment. The larger your down payment is, the smaller the interest rate should be. If possible, try to put down 20% of the mortgage value of the house. The rate is based on the prime lending rate that banks use. Also, don't be afraid to shop around if you feel like your bank isn't giving you the best deal.
Contact local services like Cornerstone Residential Mortgage for more help with the process.
How many times have you put off making repairs around your home because you didn't have the money to make them immediately? Have those decisions caused even more repair bills because you waited to make the repairs? I have done this several times in the past, and, oftentimes, not making those repairs have cost me far more to complete because the damage spread. The whole reason I created my blog was to help others find the financing they need to make home repairs without worrying about choosing the wrong type of financing option. Hopefully, my hard-learned lessons will help you avoid the same struggles that I have undergone.