First Time Homebuyer
Being a first time homebuyer can be a very exciting, overwhelming and stressful time. There are a lot of factors to consider when you are thinking about buying your first home. Below are three items first time homebuyers often forget to take into account.
1- The down payment. Down payments typically range from 3%-20% of the home price. It is important that you work to save up for a down payment. There are down payment calculators available online to help you determine how much you should be saving. For example, a 5% down payment on a $200,00 home is $10,000.
2- State and local assistance programs. There are state and local programs offered for first time homebuyers. These programs give home buyers tax credits, lower down payments and interest free loans up to a certain amount. Why not take advantage of the programs offered in your area?
3- Closing costs. Not only will you need money for your down payment, you’ll also need money for closing costs. Closing costs are typically 2-5% of the total loan amount. You can ask the seller to pay for a portion of closing costs or you can negotiate with your real estate agent. Nonetheless you are going to want to make sure you have the money to cover these costs.
Being a first time homebuyer is a big deal. Make sure you don’t blindly jump into buying a home before you really know the all the details involved in the process. Happy home buying!