Although buying your first house can and should be an exciting time in your life, it can at the same time be quite a daunting notion. Many first time home buyers, especially from a younger generation do not have firsthand knowledge of how the housing market works. This lack of knowledge can lead to people getting stuck with very high mortgage rates, making generally bad decisions when it comes to their mortgage, and also to potential foreclosure on properties. Before you decide to purchase your first home there are a few things that you should consider.
Tips For First Time Home Buyers
With all the excitement of becoming a first time home buyer it is easy to get caught up in the thrill of owning your own home. Before you sign any papers there are things you will want to consider.
- Credit: Before you purchase a home you want to make sure you credit is in good standing. Poor credit can drive up mortgage rates and make it virtually impossible for you to purchase a home you may be interested in.
- Location: One very important thing first time home buyers have to think about is the location in which their potential home is located.
- Long Term Plans: Always make sure you take the future into account before you lock yourself into any FHA home loan or agreement. How long do you plan on living there? Are you planning on having any children? You never know when your situation may change so make sure you plan ahead.
- Check And Re-Check: Don’t let the thrill of becoming a first time home buyer give you itchy fingers. There are plenty of discounts and breaks you can find to save on you FHA mortgage as long as you knew how to find them. Don’t just hastily agree to the first offer put on the table, make sure you check around and you could end up saving big in the end.
FHA Loans and First Time Home Buyers
Many lenders still do offer first time home buyer programs. After the not so distant housing crisis many people have been put off to buying or even selling homes. Although we are still living with some lingering effects from the housing crisis things are slowly starting to improve. It is now becoming easier for first time home buyers to get low FHA down payments when purchasing a new home. With the recent announcement that first time home buyers can get down payment loans as low as 3 percent it should become easier for potential homeowners to be able to afford to buy their new home. Although this recent announcement will help potential homeowners it is only one factor to consider when thinking of purchasing a home for the first time. We of course think FHA loans for first time home buyers are certainly a top choice.
As with any other financial decision it is important that you have all the information before signing any papers or agreements. With the housing market still settling after the last housing crisis, it will take some time before potential homeowners feel comfortable putting their trust and faith in the housing market again. For first time home buyers it’s crucial you make sure you take all things into consideration before you make any decisions.
If you have credit concerns, please contact our partners. They’re the experts in getting our clients “mortgage ready” with their credit scores.