There are many individuals all around the world that believe that truly “making it” in the world involves owning your own home. Of course, this is supported by the overall idea that a family needs a house, and there are many men and women that consider a home purchase a milestone and foundation with which to start a family. There are many others that might want to purchase a home because they feel as though it will be a strategic move, and that the property would appreciate over time. In addition, there is the pride surrounding the concept of “ownership” that is the motivation for many, as well. Here are 4 mortgage tips for first-time home buyers.
Eliminate Debt
First and foremost, no one should be purchasing a home while dealing with overwhelming debt. This is a concept that cannot be overstated, because there are many individuals and families that might end up behind on mortgage payments due to the fact that they have credit card bills. Those who have studied for their career also might have student loan debt, which surpassed credit card debt years ago - and still is a huge issue for many young professionals. If you can’t eliminate your debt - it might be a great move to reconsider that first-time home purchase.
The Right Agent
There is no reason that purchasing a home needs to be an experience that isn’t pleasurable. You shouldn’t be pressured into buying a first-time home, especially given the fact that you might be living at that home for many years. The last thing that you want is an agent that doesn’t truly understand your needs - or worse, doesn’t care. There are many agents that are out for commissions, and make this a bigger priority than your satisfaction. You should stay away from these people, and find the right agent that is personal and a pleasure to be around. You can also inquire about fair commissions that you are comfortable with, as well. For a first-time home buyer, the right agent can help tremendously.
The Right Rates
There are many who try to purchase a home and only go to one lender. This can be a fatal mistake. There is no reason why you shouldn’t explore all options available to you. There are also first-time home buyers that truly don’t even understand the way that mortgage rates work. You should educate yourself as much as you can, and find the right rate that fits your lifestyle. For example, mortgage broker Jennifer Harden describes how “picking a mortgage is a lot like picking a car”. Her point is that it isn’t so much about the best rate, as much as the rate that works for you and your life - similar to a car purchase.
Think Of The Future
There is no reason that you shouldn’t be thinking about the future with your first-time home. First, you should understand that even if this isn’t the only home you purchase in your life - you still will be living there for some time. You have to think about the state of your family. For example, you might choose a different neighborhood if you have young children, as opposed to purchasing a home in a neighborhood if you are single. Those that start a family might want to consider the schools in the area, because they might end up developing friendships amongst neighbors and decide to stay in the area. The idea here is that even though this is a first-time home purchase - you certainly have to wonder, “What if we stay here longer than expected?” Of course, you have to figure out what factors are important, but the future is coming, and it has to be considered.