Like most couples who get married, you start off saving money for the wedding, then a home once you are married. It is an exciting time as you two are building a life together and possibly a family. Now if you are a first time home buyer there are several mistakes you will want to avoid when purchasing you first home.
Do Not Ignore Your Budget
In 2007 when the housing market crashed, lenders became much stricter with their lending guidelines and now if you want to buy a home it is standard that 20% is needed as a down payment. Prior to embarking on house hunting, make sure you carefully calculate your home purchasing budget and monthly budget after you purchase your home. Here are some things to think about:
- Initial Down Payment, Closing Fees, Real Estate Fees.
- Monthly Payment After Home is Purchased (escrow taxes into your monthly payment to avoid large one time fees for your real estate taxes yearly)
- Utilities (electric, water, cable, phone, internet), Association Dues, & Minimal Maintenance Expenses for Fixes around the House.
If you are buying a house typically your mortgage lender will not want you to have a mortgage payment more than 25-28% of your gross monthly income. So if you make $60,000.00 per year or $5,000.00/month your monthly mortgage will be around $1,250.00/month. It is important to figure out how much your down payment will be then work backwards as to the amount of home you can afford. You never want to buy a home and struggle to pay your bills because you financially over exerted yourselves.
When you purchase a home the lender will look at credit score, income, savings, bills, outstanding loans, inquiries to your credit history, etc…All this will be take into consideration to see whether or not you are a safe investment for them to loan you the money. Your credit score will also help dictate what loan rate you will receive from your lender. You should always monitor your credit and make sure all things are in order prior to starting any loan process.
Not Prequalified For Loan or Reviewing Different Loan Options
Always make sure prior to hiring a Real Estate Agent and shopping for homes, that you speak with a lender to find out home much home you can afford and different loan options based on your needs. Getting pre-qualified can keep you on track and budget when you are ready to start shopping for a home. If you are not satisfied with what the amount you pre-qualify for, renting may be an option until you can afford your dream home.
Falling For Your First Home
Shopping for a new home is very exciting; it is also the largest investment you will make. Never make a decision based on looks alone. Do some research on the neighborhood and see what comparable homes sold for in the area. You never want to be the most expensive home. Also always get a home inspection as there could be major problems with the home that once you close will be your responsibility. Home inspections will be a good indicator on whether or not the home is in good shape.
Hiring A Random Moving Company
In Northeast FL there are many moving companies. Make sure you hire local Jacksonville movers who have experience, are licensed and have stellar online reviews. At Royal Moving and Storage we have been servicing Northeast Florida residents for over 30 years. We specialize in residential, commercial, apartment and long distance moves. Call us today for a free estimate (904) 724-6683.