Leaving your family home or rental property to get into the real estate market is a smart move, assuming you have a job and have income spare. A first home is a great place to start, as there are programs available to you that can reduce costs.
Look Into First Home Purchase Programs
There are first home purchasing programs available to those who have never bought property before. The most common of which, is an FHA loan. These loans can help homebuyers get on the property ladder with ease and affordability.
Certain states will have different programs available, usually this will be through the government, or at least branches of the government. These programs may combine all the costs, such as the closing costs, down payment assistance and mortgages with friendly interest rates. Some states are open to offering tax credits too.
Work Out How Much You Can Afford
Before getting carried away searching for your dream home, you should budget how much you and anyone you’re buying with are willing to spend. This means in terms of living costs associated with areas you’ll move to, any utility bills and of course, the total mortgage and down payment cost.
Down payments for homes can range from 5%-20% of the total value, so you should have money set aside where possible. Mortgage amounts will fill in the rest of the cost, with a longer fixed amount of years lowering the cost. A shorter term will bring the monthly costs higher, but will cost you less overall, due to less interest rates.
You can use a mortgage calculator from The Home Loan Expert to work out how much you will be paying monthly, based on how long you wish to pay, the value of the home and the interest rate offered. You can alternate the calculator find a plan that works for you, and you can contact the lender to get expert advice.
Visit The Area You Want To Move To
Before buying a home, or even beginning your search online, you should visit potential areas you’re looking to move to, to help get a feel for the place. You could do this by staying at a hotel for a weekend, visiting the main civic and public service spots, checking transport links and imagine if you could see yourself living here.
Once you’ve pinpointed an area that has caught your attention, then you can start searching for homes through realtor sites. You don’t want to search for homes first, and find a house that you fall in love with, in an area you have no interest in living in. It’s important to not buy the first place you view.