5 Questions First Time Home Buyers Have- Answered

Posted on October 4, 2021

5 Questions First Time Home Buyers Have- Answered

Buying a house for the first time can feel like learning to speak a new language. In addition to the unfamiliar jargon, you might also have multiple questions that you’ll want to be answered before you move forward with your very expensive and important transaction. 

Why should I buy instead of rent?

A home in an investment! When you purchase a house, your monthly payments won’t be building someone else investment portfolio. Instead, they will be going towards yours! Your monthly payments may stay the same or be a little more than what you paid in rent, but in the long run, you will be saving money and have the potential to make more if your house goes up in value. 

How much money will I need to have on had to buy a home?

This amount varies depending on the house and the type of loan you get. If you want to plan ahead, there are typically 3 costs you will need to pay out of pocket to get your house; earnest money, your down payment, and closing costs. Earnest money is the deposit you make when you put in an offer on a house. This lets the seller know you are serious about buying. Your down payment will be a percentage of the house price you need to pay when you go under contract to purchase the house. Talk to your mortgage lender about what percent down works for you. Closing costs are any extra costs that it takes to close on your home. These can include paying your lender and real estate agent. 

Can I buy a home with poor credit?

Having good credit can lower your monthly payments and make your overall home buying transaction a better process. Before you decided to purchase a house, talk to a mortgage lender about how you can improve your credit score. If your score is low and you want to purchase now, there are loan options available to you. Speak to your mortgage lender to see what you can get pre-approved for before you go house shopping. 

Should I use a real estate agent?

Yes! A good real estate agent can save you money and help make the transaction a smooth process. Find a real estate agent that you like and trust. They are there to help answer any questions you have about your future home. They will also be a huge help in being the “middle man” by communicating with the seller’s agent, helping you write an offer letter, suggesting appropriate offers for the market, and much more. 

How do I find a lender?

You can get money from several sources when purchasing a house. Most people go to a bank or a mortgage lender. Mortgage lenders can shop around for mortgage rates and take time to customize your loan to your needs. Reach out now if you are looking for a highly rated and trusted mortgage lender.