Tips that any first time buyer must keep in mind while looking to buy a new house
Sacramento First Time Buyer - Buying a new house can be challenging with navigating through down payments assistance programs, finding the perfect home, finding the perfect loan program, etc. The task can be even more daunting if you are a first time buyer.
Buying a new house can be a hectic task with so many things to take care of and there is one significant thing that stops people from moving forward with their home purchase… the down payment. In fact, according to a survey from the rental marketplace, 61.7% of all millennials that want to buy their own house said that they were unable to afford a down payment.
Sacramento First Time Buyer
- Explore different down payment and mortgage options
There are many mortgage options out there with each one having its own pros and cons. If you are struggling to gather the down payment, you should check out these loan options:
- VA Loans – VA Loans guaranteed by the Department of Veteran Affairs often require no down payment at all.
- FHA Loans – These loans are insured by the Federal Housing Administration that permits down payments as low as 3.5%.
- Conventional Mortgages – These conform to standards set by government-sponsored entities and require as little as 3% down payment.
- Research local and state assistance programs
- For Example The Down Payment Assistance No Down Option Is The OpenDoors GSFA Program
- One Of The Other Popular Down Payment Assistance Programs Is Called CalHFA Program.
Most states offer assistance programs for any first-time homebuyer and these programs include perks like down payment assistance, tax credits, closing cost assistance, and discounted interest rates.
- Check your credit score and pause any activity
If you’re applying for mortgage loans, your credit score will be the key factor in your loan getting approved while it’ll also determine your interest rate and the loan terms.
We can check your credit score when you complete our home loan application. You can find out errors that are bringing down your credit and look for opportunities to improve that score like making a dent in outstanding debts.
Sacramento First Time Buyer
- Get a preapproval letter
You could be pre-qualified for a mortgage to give you an estimate of how much the lender would be willing to lend based on your debts and income. As you get closer to buying your home, it would be smart to get a preapproval where we thoroughly examine your finances and confirm in writing the terms. If you have a preapproval letter in hand, it’ll make you look more serious to a seller while also giving you an upper hand over other buyers who haven’t taken this step.
Common mistakes that first time home buyer often make
With some much on the table, it is not surprising that first-time home buyer will make mistakes that they later regret. Here are some of the common mistakes, along with the tips that’ll help you avoid a negative fate.
- Not budgeting the closing costs
First Time Home Buyer Renting vs Buying Pros And Cons?
First Time Buyer Work Directly With Down Payment Assistance (DPA) Specialist Jason Whigham. Jason Whigham is a Direct Lender (Loan Depot) in Roseville California. Call or Text Jason Whigham Now To Find Out How Down Payment Assistance Programs Can Help Offset Your Out Of Pocket Expense During The Home Buying Process.
Sacramento First Time Buyer
Apart from saving for the down payment, you’ll probably need to budget for the cost required to close your mortgage and it can be significant. Normally, closing costs are generally between 2% and 5% of your loan amount. The buyer can look around and compare the prices for certain closing expenses, like home inspections, homeowners insurance, and title searches.
Team Whigham works with preferred Keller Williams Realtors who can help offset your closing cost. These highly trained Realtors will negotiate seller credits to help cover your closing cost! This does not happen all the time but more often than not, with team Whigham.
- Not saving for after move-in expenses
Once you have applied down payment assistance with Jason Whigham and his team and budgeted for closing costs, you need to set aside a budget to pay for what’ll go inside the house. This will include furnishings, rugs, appliances, new paint, updated fixtures, and other improvements you might want to make after moving in.
- Buying the new home for today instead of tomorrow
It is a common theme for people to look at properties fall in line with their current needs. However, if you’re planning on starting a family or expanding it, it would be wise to consider that as a factor when looking for a new house. Always consider your future wants and needs and decide if the new house you’re considering is suiting them.
- Not looking at enough options and passing up on negotiating
If you do not negotiate, you will never know what was up for negotiating and this can result in you losing out on major savings. Are there major repairs that you can get the seller to cover by giving you a credit adjustment at closing or by fully handling them? Will the seller be willing to pay for a part of the closing costs?
If you are in a buyer’s market, you might find that the seller is willing to bargain with you because they want to get their house off the market quickly.
- Not knowing the limits of a home inspection
Once your offer is accepted, you will be paying for the home inspection if you want to examine your new property’s condition, but the results can only tell you so much.
- Not every inspection will test for things like mold, radon, or pests so always make a point in knowing what all is included.
- Make sure that the inspector is able to access every part of the house, such as the roof, basement, or any crawl spaces.
- Attend the inspection and keep a keen eye.
Choose My-DownPaymentAssistance.com for your down payment needs
If you are a Sacramento first-time buyer and surrounding area, here is a great solution for you. Afford more than you’ve imagined with as low as 0% down on mortgages up to $484,350. My-DownPaymentAssistance.com works in three basic steps –
- Choose the best option
- Compare the down payment options
- Painless pre-approval
For more information about our down payment assistance services, visit our official First Time Home Buyer website.