A Look At Some Of The Opportunities Available To First-Time Homebuyers
First-time homebuyers can easily make mistakes that more veteran home buyers know to avoid. This guide provides the 14 biggest mistakes that this type of people make when trying to buy a home. The biggest mistake is going out to look at home before you’ve even applied at a lender. You need to have everything lined up and know what amount you are approved for before starting to look. If lenders are only willing to loan you $350,000, for instance, it’s a complete waste of time to look at homes that start at $400,000 or higher.
You also should not deal with just one lending firm. Shop around because buying a home is the biggest purchase in your life if for no other reason. By shopping around you can find much better offers of interest rates than just dealing with one lender. You should not just compare interest rates but also loan terms and tacked-on fees. Also look into customer service and how responsive the lender is because problems will crop up at some point over the length of the loan.
One thing to watch out for is that real estate agents will try to put you into the most house you can afford. This is a really bad idea for you as it leaves you no wiggle room to deal with inevitable setbacks. They will say that your income will increase to better manage the mortgage payments but, in the real world, there is zero guarantee of that happening. Instead, buy less house than you can afford so that when bad things happen you aren’t in a really bad position.
Looking at a local market, any First Time Home Buyer Services crown point in serves as a good example. This article delves into the options that are available to residents of this city as well as others. One program that is available is the HUD’s Good Neighbor Next Door program. If you are a firefighter, police officer, teacher, or emergency medical tech than this program is fantastic. You will receive a 50 percent discount on your home if you are willing to buy a home in an area that is one that features blight, abandonment, or is an area that people otherwise don’t want to live in without an incentive.
Another great resource for first-time home buyers is the Veterans Administration loans program. VA loans are a great resource that can even offer first-time homebuyers the opportunity to buy a home with nothing down. These types of loans also offer very competitive interest rates and are backed by the federal government.
If you are a person that would enjoy living in a rural part of the nation there are loan program designed for you. The federal Department of Agriculture has loan programs designed specifically for people with low to moderate incomes who want to live in these types of communities. The biggest downside to this opportunity is that you will be living in an area with limited resources and far away from the things you might want access to.