Following is a great commentary on the most recent changes in the market, and great tips for first time
Houston home buyers.
Buying a home for the first time is definitely a very exciting experience! Although it’s easy to get caught up in the emotions of it, there are many practical things to keep in mind. Luckily, there are a number of people to help including your real estate agent, lenders, and sellers that can make sure that you are getting exactly what you need without placing yourself in more debt than you need.
First you need to prioritize. Determine what you actually need from a home, rather than what you want. Perhaps the hot tub, sauna, and pool can all wait if it means you will in turn get all the rooms you need. Dreams can be attained but they will take some time. A first home should fit your situation and needs first and foremost.
When starting to buy your home, save all the money you can. This will be your down payment and maybe even give you some extra money to spend on the home once it’s purchased. Extravagant living will have to wait for secure living to come first.
One of the things lending companies look at most is your payment history. Make sure that you pay all your bills on time. If you have fixed the problem of late payments, call the companies and try to have it taken off your credit report.
When borrowing money, look in places other than mortgage companies. Friends and family may be happy to give a gift of cash that’s going toward a down payment. This money will also be considered as added debt and can lower the payments for the mortgage.
Parents, relatives, and other investors may need to co-sign the loan document for you. Another alternative is to let them have co-ownership. With this option, you will live in the house but the co-owner may be liable for some of the expenses but also benefit from tax breaks, accrued equity, and any profits on the sale of the home.
When deciding on the mortgage that is right for you, make sure that you understand all your options so you can have an affordable down payment, as well as monthly payments.
Builders and sellers can be a good place to look when deciding on financing. They may have lower interest, as is the case with some balloon loans, and it will give you time to gain equity in the home that can be used to pay off the loan. Home sellers can sometimes offer a take-back loan or a lease-purchase agreement.
Consider what you can offer for a better price. For example, if you’re the adventurous type, you may consider going to auctions, where the homes are generally much cheaper, to see what’s for sale. Or if you’re very handy, you can buy a home that needs a lot of repair for a smaller price tag. Being able to fix it up yourself will certainly save some money.
