How to Prepare to Purchase Your First Home
Buying a home can be a hard, confusing process under the best of circumstances, and if you are buying a home for the first time, this process can be even more overwhelming. Fortunately, it’s not as intimidating as it may seem, and there are many professionals who can help get you through the experience. Here’s a quick look at how to purchase a home for first-time homebuyers.
FHA Loans
As a first-time homebuyer, you have access to programs that you may not otherwise. FHA loans are loans that are available to first-time homebuyers and they are backed by the federal government. They come with reduced down payments and specific protections for both the lender and the borrower, thus helping to put homeownership in reach for many who wouldn’t otherwise have access to it.
Since FHA loans are standard in the real estate industry, you should be able to find a mortgage company that can walk you through the process and offer you competitive rates. For example, Lynx Mortgage Bank, located in Westbury, New York, has ample experience in offering FHA loans and helping first-time homebuyers through the buying process.
Other Financial Considerations
There are a few things you should do in order to prepare yourself to buy a home. First, make sure that your financial health is in order and have a rough idea of how much of a down payment you will need to make the purchase. FHA loans usually require less money down, potentially dropping as low as 3.5% of the purchase price.
While the FHA reduces barriers, it doesn’t eliminate them entirely. You will still need money for a down payment and all closing costs. Furthermore, you must have good credit and be able to afford your mortgage payment.
Lastly, make sure that you are realistic in your expectations. Before getting your heart set on where you want to move and what type of home you want to move into, ensure you have a good understanding of what you can realistically afford, including mortgage, property taxes, insurance, and maintenance costs. Homebuying is more expensive than many realize, and having realistic expectations can help you have an easier time throughout the homebuying process.
Do you have more questions about buying your first home? We want to help answer them! Give us a call at 877-599-LYNX today!
References
[1] https://www.nerdwallet.com/article/mortgages/fha-loan
[2] https://www.investopedia.com/terms/f/fhaloan.asp
Lynx Mortgage Bank was founded by a small group of mortgage and financial professionals in Long Island, New York, seeking to offer customers a simple “no surprises” approach to the mortgage process. They offer a full range of products, from mortgages to home equity lines of credit.
Licensed Mortgage Banker; New York State Department of Financial Services.
