How do you know when its time to quit renting and own a home of your own? We are going to go over some things that first time home buyers tend to forget or just don't know.
1. Down Payment
Your down payment is the percentage of your home's purchase that you pay upfront at your closing usually. Your down payment varies due to some factors like credit, market conditions, and the type of mortgage you qualify for. While you need to be upfront about your down payment when you put in a purchase offer you can change is prior if the seller agrees. The number one rule here is that the more you save and the more you have upfront the better.
2. Home Appraisal
For your own good you need to make sure that the offer price matches that actual value of the home you're trying to buy. Lenders do require this before approving your loan. Usually the appraisal costs between $300-500 dollars.
3.Home Inspection
This also is in your benefit to get done. Licensed home inspectors are trained to find problems or potential problems that the casual walk through of a inexperienced home buyer would miss.While lenders do not require this it is strongly encouraged for your own good. The cost are similar to a home appraisal. We suggest this just because it really could catch things early on.
4. Property Taxes
Since property owners pay property taxes upfront, usually in six-month increments, you need to compensate the seller for taxes paid on the period between the closing date and the end of the current tax period. This expense varies widely based on your local tax rate and the closing date. You could be responsible for nearly six months of property taxes, or practically none at all.
5. First Year Homeowners Insurance
Lenders do require proof of insurance prior to closing on your home. Majority of the time you need to pay first years premium up front. Home owners insurance can vary in cost due to many things.
With using this as a check list in a way you can be prepared for buying your first home
