Becoming a homeowner for the first time is exciting. However, for many potential buyers, the process can also be confusing. Below is an overview of the steps you need to complete in order to buy your first home. 

Work Out The Finances

The first step in buying a home is deciding on a price range. This price range will be determined by your income, as well as your own comfort level with home prices and monthly payments. Consider all of these factors to determine the maximum amount you are willing to spend on your new home. 

In most cases, you will be required to pay the downpayment and closing costs upfront, even if you are financing the rest of the home’s purchase price.

In general, most lenders will expect a downpayment equal to 20 percent of the home’s purchase price. Otherwise, you may be required to pay mortgage insurance. Before buying a home, set enough money aside to cover these expenses. 

For most homeowners, the next step in the home buying process involves looking into different mortgage options. Unless you have enough money to purchase your home for cash, you will need a mortgage. Be sure to compare quotes from different lenders before making a choice to be sure you are getting the best deal.

Once you have chosen a lender and a specific type of mortgage, ask for a preapproval letter that you can attach to any offers you make so that you will be a more reliable and attractive buyer. 

Hire An Agent 

When searching for the perfect first home, hiring a real estate agent to represent you throughout the process is highly recommended. Your real estate agent will act as a buyer’s agent, which means they will have your best interests at heart. When you don’t have a buyer’s agent, you will be dealing only with the seller’s real estate agent instead. Because this individual has been hired to represent the seller, they will always put the seller’s needs above yours. 

Find The Right Home

Once you have a qualified agent to represent you and a preapproval letter from your lender, it is time to start looking for your new home! Your real estate agent will help you comb through listings and choose the properties you want to see. Next, you will walk through each home until you find the one that is right for you. After you have chosen a home, your real estate agent will help you prepare and submit an offer to the seller. 

The process of buying your first home may seem overwhelming at first. However, by following these steps, you can simplify the process and become a homeowner with ease. 

Filed under: Real Estate Tips by Julie Woodward
Comments Off on How to Become a Homeowner: First Time Home Buyer Guide

If you’re buying a home, you already know that it costs money.
But what are the costs of owning a home that go beyond the mortgage? If you’re a first-time buyer, here’s what you need to know.

Beyond the Down Payment

For most home purchases, buyers need to come up with the standard 20 percent down payment (unless you’re using a VA loan, which doesn’t require a down payment at all, or some types of FHA loans).
Other than your monthly mortgage payment, which begins shortly after you move in, you’ll have to think about furniture, décor, and in some cases, appliances. The
These things really add up… and unfortunately, there’s more to come.

Real Estate Taxes

Your home’s value is the biggest factor in the amount of taxes you’ll have to pay. In many cases, mortgage lenders final real estate taxes into monthly mortgage payments—and that can be a big bonus for you because your taxes will be paid on time, and it’s one less thing to worry about.

Homeowners Insurance

You’ll most likely have to purchase homeowners insurance, which protects you against issues such as fire, theft, and other disasters. However, as with other types of insurance, you’ll most likely be required to pay a deductible if something happens; that means it’s a good idea to set aside a stash of cash for an emergency.

Homeowners Association Dues

Some neighborhoods and subdivisions charge homeowners a monthly or annual fee to care for the sidewalks, landscaping, and other amenities. Nearly all condominium complexes charge HOA dues, as well.

Home Maintenance

If possible, you may want to purchase a home warranty that will cover defects and issues. If not, remember the everything in your home has a life expectancy—including appliances, fencing, and other components.
Most experts suggest that you budget between 1 and 2 percent of your home’s purchase price to put toward annual upkeep.

Are You Buying a Home in Port Aransas?

Whether you’re looking for a home for sale in Port Aransas orNorth Padre Island, we’d love to help you find the perfect place to live.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll start searching right away.
In the meantime, check out our:

• All-in-one mortgage calculator
• Free homebuyer handbook
• Free eBooks about buying a home (and more)

Filed under: Blog, Buying, Financing, First-Time Buyers by Julie Woodward
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