FAQs FOR THE FIRST TIME HOME BUYER

Buying your own house comes with investing a huge amount of money. It cannot be compared to purchasing your daily essentials. An investment of this magnitude requires you to understand the entire process so that you can make an informed decision. It is extremely important to have an understanding before making an investment. 

It is justifiable to have tons and tons of questions that some of you might think are too basic or outright silly to even be asking. But remember, as the old adage goes, there are no dumb questions. So let’s take a look at some of the most frequently asked questing we get from first-time home buyers.

1.How do I know if I’m ready to own a home?

From a financial point of view, you should have your savings plan in order. This should allow you to pay down debt and save a little as well. A self contribution of at least 20-30% is required.

2. Why should I buy a home instead of renting one?

Think about it this way- when you buy, you are investing in your own future. And when you rent out, you are helping your landlord to invest in his or her future. There are multiple financial perks like tax deductions and home equity that come along with buying a home. Moreover, you will genuinely invest your emotions in your own house rather than a rented house.

3. How do I know how much I can afford?

It is always a good idea to meet with a bank or lender. They will help you determine a range of home prices that you may be approved to buy-in. A lender will consider several factors like your income if you have any debt, any owned assets, and your history before issuing a preapproval letter. This letter details the amount you can purchase, providing a financial picture that does not drastically change during the home-buying process.

4. Am I able to buy a home with average credit and little or no money down?

There are loan programs for nearly every homebuyer who wants to get into the real estate market. A buyer’s credit score and down payment may impact the amount they’re approved to buy or their financing rate, but there are typically mortgage options to meet many financial situations. As mentioned earlier, we would always recommend having at least 20%-30% of funding ready with you.

5. Do I need a real estate agent?

It is definitely possible to buy a home without a professional real estate agent. But mind you, it will be an arduous task to do it by yourself. Not only are professional real estate agents equipped with the right training to help buyers, but they’re also up-to-date on current market conditions, real estate procedures, and the closing process. However, online searches, virtual viewing, sites like nobroker.com have changed the scenario and made it relatively easy to buy a house without a broker.

Hopefully, this FAQ list has helped to shed some light on the home buying process for first-time buyers. Feel free to get in touch with us, if you have any queries related to property buying.