First-time buyers, are you ready to take a deep dive into some of the things that must be on your bucket list while purchasing a home? If so, let’s take a glance.
The first thing a homebuyer needs is to have in-depth knowledge about every step involved in the process. There are any number of useful resources available. You can start researching by checking resources available online, but eventually you will want to talk to a lending professional.
The second thing to consider when buying a home for the first time is whether you and your family are ready for a long term commitment. Mortgage terms are long and even if you sell your house before it is paid off, much of your resources may be tied up in the home and its surroundings for years.
The third thing that will turn out to be useful for you as a first time home buyer is there is no house to sell before you buy a new one. This means that you do not have to stress about double mortgage payments that second-time buyers may have to worry about. You only need to focus on your first-time home which may be your dream.
A fourth consideration is whether you have enough saved for a down payment. While some loans do allow for very low, even no down payment, larger down payments often result in better terms and lower rates. The federal government’s HUD programs, for example, offer some options with no down payment requirements.
Number five is to consider the myriad of government programs available to qualifying first time home buyers. You may opt for one of the first-time homebuyer programs in PA. These are programs implemented by the government and are based on income limitations, purchase price constraints, and other factors. As previously stated, these programs may offer no down payment requirements. Other programs, however, offer down payment assistance loans or grants.
To qualify you must meet certain requirements. In certain circumstances, even if you have owned a home previously and sold it some years back you may still qualify as a first-time home buyer. However, this depends and may vary from person to person. To determine if you fit the definition of first time homebuyer, contact a qualified loan professional today.
Consideration number seven is to remember all of the associated costs associated with obtaining a refinanced mortgage. Chief among these are often closing costs. Closing costs are the expenses related to arranging and processing the loan services. They can include attorney fees, inspection fees, appraisal fees, escrow fees, and title costs.
Choosing the real estate agent is key. As you are first-time homebuyers, you must be aware to interview more than one realtor. This is because some may benefit you more and others less. You will be able to analyze this after interacting with multiple realtors.
Number nine recommends that you must have a good credit score. A good credit score will increase your chances at lower interest rates, better terms, and greater number of loan options.
Finally, you must make every effort to lower your debt to income ratio before you purchase. Your debt to income ratio helps lenders gauge how much loan you can afford. So first time homebuyers may be wise to pay down as much debt as possible before purchasing.
Necessary Steps for Purchasing a House in PA
Now that you know all things you need to know if you are a first-time home buyer in PA, you must also know what are the essential steps or the checklist that you must know.
- Work on your credit score
- Save up for a down payment
- Find a lender
- Determine what you can afford
- Get pre approved for loan
- Find a real estate agent
- Find the house of your dreams
- Make an offer
- Negotiate the best deal
- Get a home inspection
- Appraisal
- Closing date
- Move in!
So, after abiding by these steps, you will be a homeowner. This checklist might help you in making the process of buying your first dream home easier. Contact one of the experienced loan professionals at Dynamic Funding today and take the first step towards finding the home of your dreams. Even if the process seems overwhelming, be confident. With a little research and some hard work, you and your family can be in your new home in no time.
