Most people don’t have the funds to buy a home outright with cash. Getting a home loan allows them to fulfill their dream of homeownership.
Taking out a mortgage makes purchasing a property possible. It means you can finally stop paying rent, start building personal wealth and move into a more permanent living space. But it also means taking on more responsibility.
Here are ten things you should know before getting a home loan.
10 Things to Know Before Getting a Home Loan
Most first-time buyers are unaware of what the homebuying process actually entails. Often, they are shocked to find that they need money for more than just a downpayment, but also things like closing costs and home inspections. Furthermore, they’re uncertain as to what the process involves and what’s required of them.
Here are ten things that all first-time buyers should know before getting a home loan:
1. You Can Put Down Less than 20%
It’s a common misconception that putting down 20% is an absolute must. There are zero down and low-down payment programs out there for individuals who qualify.
2. You’ll Need to Pay for Closing Costs
You should budget for more than just your down payment. You’ll need to pay closing costs too which will include taxes, insurance, title fees, and other fees.
3. Home Inspections Are Incredibly Important
Unless it’s absolutely necessary, we don’t recommend skipping the home inspection. Buying a home is a big decision. It’s important to know what you’re getting into.
4. It Might Take Some Time
Especially in today’s market, when home inventory is low, buyers are finding that it’s taking longer than expected to find a home. It’s important to be prepared for this and remember to be patient. Nothing lasts forever. The right home will come along eventually.
5. Having Good Credit is Definitely Helpful
Your credit score plays an important role in getting a home loan as well as your monthly payments and interest rate.
6. You Can Choose Any Real Estate Agent You Want
Don’t feel required to work with the agent that your lender recommends. You can choose any real estate agent you want.
7. It’s a Good Idea to Compare Lenders
Shopping around and comparing lenders might seem like a pain, but it could save you A LOT of money in the long run.
8. Buying a Home Can Be Stressful
The homebuying process isn’t always butterflies and rainbows. But in the end, it will be worth it, and you’ll be the new owner of a beautiful home.
9. You’ll Learn a Lot
You may feel overwhelmed in the beginning from all the information you’re receiving. But in the end, you’ll have learned a lot. You’ll be an experienced homebuyer and the knowledge you’ve gained will be priceless.
10. You Can Always Ask for Help
There are tons of resources out there for first-time homebuyers. You just have to be willing to ask for help. Remember, your lender is a valuable resource when you have questions or simply need some advice. That’s what they’re there for.
Interested in Getting a Home Loan?
Call our office today to begin the prequalification process!