Helpful Tips for First-Time Home Buyers
posted on Friday, July 24, 2020 in Financial Tips
Purchasing a house can be an overwhelming experience, especially if it’s your first time doing it. It involves a lot of decision-making, paperwork, financial obligations, etc. Don’t get discouraged. The feeling of accomplishment that comes with owning your first home will be incomparable. To help you through the buying process, here are some points to consider:
Assess Your Financial Health
Before you look at listings online or go house viewing, it’s important to take the time to evaluate your financial standing. The last thing you’d want is to apply for a property with no long-term plan on how to pay for it. Get a pen and paper. Write down all your current and future expenses—from fixed payments like utilities and food, down to the non-essential spending like monthly subscriptions.
Next, consider your current income and bank savings. Ask yourself whether it can accommodate adding mortgage to your current payments. Doing this will help you see the bigger picture. More importantly, it will be easier to set a realistic budget for when you go house hunting.
Explore Different Housing Options
Nowadays, the housing options available in the market are almost endless—bungalows, condominiums, townhouses, duplexes, etc. Before applying for a listing, be sure to weigh both the pros and cons of the property. Consider different factors like your preferred neighborhood, access to essential businesses, transportation systems if you commute, etc.
Secure Proper Funding
There are different financial institutions that offer mortgage plans specifically designed for first-time home buyers. These include credit unions, local banks, and brokers. Depending on your financial status, you can either opt for a fixed or adjustable payment option. The former asks for a set repayment amount for the duration of the home loan, while the latter fluctuates overtime depending on the standard interest rate in the market.
Get One Step Closer to Your Dream Home
With proper planning and a good mortgage plan, you can achieve your dream of owning a property. At Community 1st Credit Union, we help our members select a home loan that would best fit their needs and lifestyle. We offer competitive rates for our home refinancing, purchasing, and equity loans. For questions or concerns regarding our services, don’t hesitate to contact us today.