First Time Home Buyer - 7 Important Points You Need to Consider


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Are you a first time homebuyer? This PPT is describing about few important points you need to consider.


Presentation Transcript


First Time Home Buyer: 7 Important Points You Need to Consider


Introduction As a first time home buyer the experience of buying a home can be both exciting and nerve-wracking for you. The excitement of buying a new house, whereas the anxiety about it being a major financial decision of your life. Owing to the excitement and the anxiety involved in the process, chances are that you may make a few rookie mistakes. You can, however, avoid these mistakes by doing a little financial homework.


Here’s a list of points you must consider when buying a home. Let’s begin

1.Organize Your Financial Documents:

1.Organize Your Financial Documents When applying for mortgages, it is important for the homebuyers to furnish income and tax documents. Some of the documents Texas home loan and mortgage companies require include bank statements of past two months, tax returns, and two recent pay stubs. To make the process easy and less time consuming, make sure you organize your financial documents beforehand.

2.Find a Financial Agent:

2.Find a Financial Agent A financial agent can help you through inspections, price, negotiations and financing. When it comes to home-buying, bargaining skills are key. It is, therefore, advisable to ask sale agents for sale-to-list-price ratios for worthy deals.

3.Get Your Credit Pre-Approved:

3.Get Your Credit Pre-Approved Getting your credit pre-checked and approved gives you an edge with the sellers looking for quick and smooth deal. Some lenders also provide underwritten pre-approval committing to fund the loan and this is almost as good as cash.

4.Calculate your Monthly Costs:

4.Calculate your Monthly Costs It, undoubtedly, takes immense effort to scrape off the down payment. But, even if you scrounge up a down payment, calculate if you can comfortably endure the total costs of owning a home – including taxes, insurance, fixed costs, and mortgage.

5.Consider Foreclosure:

5.Consider Foreclosure Did you know that foreclosed homes often sell at discounts? To get hold on any such deal contact a financial agent who specializes in foreclosures. You must, however, act fast when you come across a foreclosure deal as there are others wanting to grab the offer, too.

6. Get Government-Backed Loans:

6. Get Government-Backed Loans Government loan programs offer multiple benefits to the first time home buyers. Texas Mortgage Programs, for instance, offers first time homebuyers in Texas more competitive rates and down payment assistance. Going for government-backed loans can definitely provide you a range of benefits. Check it out for more details.

7.Compare Mortgage Options:

7.Compare Mortgage Options Understanding the multiple mortgage options are important for better deals. For instance, Federal Housing Administration loans offer better rates for those with less-than-pristine credit. But, it is significant to understand the tradeoffs: with an FHA loan, you need to pay an extra 1.75% of the total purchase price plus annual insurance for the life of the loan.

The Bottom Line:

The Bottom Line As a first time home buyer you must take all the necessary precautions to ensure that you don’t end up making the wrong decision. Do all the research that’s required, talk to friends and family, go online and read about first hand experiences of home buyers. All in all, make sure that you don’t leave a single stone unturned, as this may be one of the biggest financial decisions of your life.


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