What Are First Time Home Buyer Requirements?
In an alternate universe, buying your very first home would be as easy as grabbing your favorite snack from a grocery shelf and paying for it at the check out counter. But we live in real world and the prerequisites in buying a home could very well give you a nervous breakdown. While many a real estate agent would voluntarily offer their services in exchange for good commission, it is also part of your responsibilities as a future homeowner to be knowledgeable when it comes to the requirements necessary in securing a brand new home.
First Time Home Buyer Requirement #1: Money
Of course you already know that you need money for downpayment. But keep in mind that when buying a new house, there would always be a lot of other expenses involved that you would not be able to easily recognize, or better yet, understand. Your credit rating is the star here, and would most likely be the deciding factor on whether you would be able to secure a loan or not.
First of all, you’ll need money for downpament. The bigger your downpayment, the better it will be for your mortgage. You would probably be hoping that the list of expenses ended there, however there is still a long list to consider which would include: legal costs, registration of title, telegraphic transfer fee, building insurance fee, homebuyer’s report, and moving costs, among others. Once you finally get the keys to your house, more money would be needed for upkeep and maintenance costs so you should also take those into consideration.
While many future homeowners grapple to understand these expenses, many also opt to use the services of a real estate agent, which is an added expense for you by the way. But when you have a real estate agent helping you out, you’ll be spared of a lot of headaches.
First Time Home Buyer Requirement #2: Mortgage
This is still an issue of money, and you would begin paying for your mortgage after all the expenses mentioned above (except for maintenance costs) are settled. Securing a good mortgage is essential if you do not have the funds to pay for the house in full, which is the case for majority of home buyers. There are various types of mortgages and they vary in terms of features, fees, and terms. The important thing to look out for here would be the terms and interest rates. How low is the interest rate compared to what other banks are offering? How flexible are the terms? These are just some of the questions that need to be asked.
First Time Home Buyer Requirement #3: Real Estate Broker
Dealing with financial obstacles is hard enough; having to understand each and every provision of whatever legal document you have to sign might just be too much to bear. As such, why not avail of the services of real estate experts for a minimal fee and save yourself the hassle? Without a doubt, having a real estate broker to take care of things and making sure everything’s fair and correct is convenient. Just be sure to check the broker’s credentials before making a decision to do business.