Posted by CENTURY 21 CUDDY on 3/11/2018

As a first time home buyer, you may feel like a fish out of water when it comes to the process of getting a home. If youíre ready to buy your first home, thereís some key mistakes that you should avoid. 

You Think That You Donít Need Help From A Professional

So many homebuyers think that they can save themselves a few dollars by avoiding working with a realtor. This is a big mistake. Realtors are a valuable resource for buyers and will help you throughout the process of purchasing a home. Realtors can help guide buyers step-by-step while providing assistance with things like negotiations and making sure all of the paperwork gets from point A to point B. Youíll also need other professionals involved in this process of home buying including lawyers and loan officers. Having these people on your team protects you and gives you a backing of knowledge that you wouldnít otherwise have. 

Donít Skip Pre-Approval

Getting pre-approved for a mortgage is key before you even start to search for a house. The pre-approval letter is a great resource in helping you land the home of your dreams. If youíre going up against other bids on a home, your bid will be seen as more serious if you have been pre-approved. Getting a pre-approval lets sellers know that youíre serious about the whole process of buying a home and are ready to make the financial commitment. 

Know The Costs Associated With Buying A Home

Just because you have the monthly income to pay a mortgage doesn't mean youíre financially ready to buy a home. Thereís a few things that need to be in place before you can even commit to buying a home. First, youíll need to make sure your credit score is up to par. Next, youíll need to have enough saved up for a down payment. Without a down payment of at east 20% of the purchase price of a home, youíll need to pay for private mortgage insurance (PMI). Thereís plenty of other costs that youíll need cash on hand for when it comes to buying a home. This includes home insurance, home inspections, closing costs, property taxes, HOA fees, and maintenance. In other words, there needs to be some wiggle room in your budget for all of the extra costs that go into closing on a home and maintaining a home. 

Donít Completely Deplete Your Savings

Just because you have been saving up for years to buy a home, doesnít mean you need to completely deplete your savings in one pass. If you lack an emergency fund, youíre not buying a home with a responsible financial cushion. While youíll probably take out a good chunk of savings in order to purchase the home, you need a bit more. Experts say that you need about 3-6 months of expenses saved up in case of the event of illness, job loss, or other emergency. Hence the name ďemergency fund.Ē

Posted by CENTURY 21 CUDDY on 6/5/2016

OrganizedWhether you buy your first home later in life, or directly from college, buying your first home is a major milestone in your life.† For that reason, there are things you need to be knowledgeable about before your purchase is complete. You will want to safeguard yourself so you know that you are getting a home and a loan that you can afford. Here are a few tips from mortgage and real estate pros to help prepare you for the biggest purchase of your life. Using an Agent If you are a buyer, then there is no reason not to use a real estate professional. It does not cost you any more money to hire an agent. That agent will do more than find you that perfect house. You will discover that after you find a house is when you will need that agent the most.† The agent will use their expertise to present your offer to the seller and then address issues that may arise between contract and closing. House Hunting Remember, location, location, location. This is very important when buying a house.† Location plays a big part in determining the market value of the home. Before you start the house hunting process, make sure you know what neighborhood is a good location for you. Also, it would be good to have an idea of what style home you are looking for. Real estate moves quickly, so if you see a property that you love, you should move on it before someone else does. Find a Loan that Works for Your It sure can be tricky business trying decide what kind of loan is right for you.† There are many different types of loans that you should be aware of.† There is an Adjustable rate mortgage which has an interest rate that is linked to an economic index. So as the index changes your interest rate and payments may go up or down. There is also a 30 Year Fixed Rate Mortgage as well as a 15-Year Fixed Rate Mortgage. Some state and county maximum loan amount restrictions may apply. Home Buyer Alternatives for First Timer Saving for a first home can sometime seem like itís a hill that too steep, but donít worry there are assistance programs that can help. The Federal Housing Administration offers loans to people with a credit score as low as 640, low down payments and down payment assistance. There are also VA and USDA loans: Certain active members of the military and veterans as well as qualifying residents of designated rural areas can qualify for a 0% down-payment housing loans that are free of mortgage insurance fees. How Much Do You Have to Put Down? It really depends on what type of loan you have. If you have a conventional loan then you may have to put as much as 20% down. It is possible to put 5% down on a conventional loan if you donít mind paying mortgage insurance.† If you go with the FHA loan you will need at least 3.5 % down.† For people who are relying on others to help with down payments, an FHA loan may be a good option. First time home buyers need to look around and know that there are a multitude of down payment assistance offers by state or local governments. Closing cost: There can be a lot of hidden fees in closing costs; first time home buyers should be aware of these costs.† These fees are typically included in the closing costs, including fees for commissions, appraisals, inspections, certifications and surveying.† There will also be fees for government record changes, tax and title services and transfer taxes.

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