Purchasing a home for the first time is exciting, but the process can soon become overwhelming if you do not prepare in advance. There are certain questions that first time home buyers should ask to prepare themselves.
In general, identifying the type of home you desire, determining your budget and finding the right type of mortgage are all important, along with getting pre-qualified and finding the professional help you need to ensure a successful buying experience. In this review, we discuss four questions that all first time home buyers should ask before they start the journey of finding the home of their dreams.
Important Questions For First Time Home Buyers
Every first time home buyer should evaluate their own situation and establish a plan before they begin the home buying process. However, there are certain questions that every first time home buyer should ask, which we cover in detail below. These questions can get you started and point you in the right direction as you begin your home buying journey for the first time.
What Type of Home Fits Your Needs?
One of the first questions you should ask is what type of home is most ideal for you and your family. A detached single-family home is often the go-to solution, but those who live in more populated areas may benefit more from a condo, duplex, or townhome. Of course, the amount you can afford may factor into the type of home that fits your needs, along with considerations such as the number of children you and your significant other have and how much additional space you will need.
In addition, it is important to consider your willingness to renovate your home. If you have time and money for a renovation and want to save money long-term, then purchasing a “fixer-upper” may be appropriate. If you are on a limited budget and prefer something that needs little to no renovation, then establishing this beforehand is important.
Are There Specific Features You Want?
The type of home provides broad parameters to narrow down your search. However, you can go further by considering the specific features you and your family desire. For example, some families may prefer a bigger backyard to put a playground for their children. Others may prefer a home that includes a pool, new appliances or other features that make a home particularly special.
You should also consider the location as well. In doing so, take into account how close your new home will be to you and your family members’ work and school, social opportunities that are nearby and the walkability of the area.
What Mortgage Do You Qualify For?
You should also consider the type of home loan you wish to receive and how much of a mortgage you qualify for. Most lenders recommend spending no more than 30 percent of your monthly income on your home mortgage and ensuring you have a debt-to-income ratio below 40 percent. You can calculate how much you qualify for by multiplying 30 percent of your monthly income over the course of 30 years (or 15 if applicable).
Next, you should consider the type of home loan you desire, which is based on your FICO credit score, how much you are able and willing to put down as a down payment, your military status and whether or not the home you desire is in a rural area. Four of the most common types of home loans are FHA, conventional, VA and USDA. Once you have the details sorted out, start the pre-qualification process.
Who is Going to Help You Through The Home Buying Process?
First time home buyers should not go through the process alone. Instead, hiring professional help can ensure the home buying process goes smoothly and you are able to find the home of your dreams within your budget.
There are two main real estate professionals that you should consider hiring if you are a first time home buyer, which is a buying agent and a mortgage broker. The buying agent, sometimes called a real estate agent, works on behalf of the buyer and communicates with the seller and the seller’s listing agent to negotiate the best deal possible.
A mortgage broker works as an intermediary between the home buyer and the mortgage lender. The mortgage broker receives offers from various lenders, negotiates the best terms possible (interest rate, down payment, mortgage insurance, etc.) to save the buyer as much money long-term as possible and ensures their financial desires are met in the best way possible.
Contact MyLendingPal As First Time Home Buyers
Reach out to our mortgage broker team at MyLendingPal for assistance in the home buying process. We help home buyers secure the best mortgage possible and genuinely enjoy helping those within our community get a great rate on their dream home.