May 1st is New Homeowners Day! Buying your first home is a memorable and gratifying experience that should be commemorated. However, there are many caveats that should be considered before making such a huge investment. The down payment that is needed to purchase a home often deters new home buyers; however there are many assistance programs that can alleviate the upfront costs. There are financial incentives such as the California Homebuyer’s Down payment Assistance Program (CHDAP), which offers a deferred-payment subordinate loan in the amount of 3% of the purchase price of the home or its appraised value. We highly recommend using the expertise of a realtor who has extensive knowledge in mortgage lending and home services. California Licensed agent, Mitra Guilani weighs in on her tips for first time homebuyers:
Considerations Before You Buy: Determine is what your long-term goals are and see if home ownership fits in with those plans. Do you want to get out of renting or you just like the idea of owning and being your own land lord?
- What type of home best suits your needs?
You have several options when purchasing a residential property: a traditional single-family home, a townhouse, a condo, or a multi-family building with two to four units. Each option has its pros and cons, depending on your home ownership goals.
- What specific features will your ideal home have?
Your list should include basic desires, like neighborhood and size, all the way down to smaller details like bathroom layout and a kitchen that comes with trust-worthy appliances.
- How much mortgage do you qualify for and how much can you actually afford?
Before you start shopping, it’s important to speak to a lender and get a loan pre-qualification. You have to know how much a lender can give you based on the amount you have saved for down payment.
- Who will your Real Estate Agent Be?
A real estate agent will help you locate homes that meet your needs and are in your price range, then meet with you to view those homes. Once you’ve chosen a home to buy, these professionals can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. A good real estate agent’s expertise can protect you from any pitfalls you might encounter during the process.
Have questions regarding properly insuring your new home? Give us a call today!