With the economic challenges of the past several years, housing bubble, and unemployment numbers many Americans have given up on the dream of homeownership thinking that it is no longer a possible reality. The news is full of negative stories that would lead people to believe that this part of the American dream is no longer available for the middle class.
Those stories could not be further from the truth. The dream of homeownership is alive and well, and within reach for most renters. Many people think that they cannot buy a home because they do not have a large down payment. If you can afford to move into a new rental house you can probably afford to buy your own. It is common on the rental market for landlords to charge first, last and deposit. If you are paying $2,200 a month in rent that could be $6,600! Some mortgage loans only require a down payment of 3.5%. That means if you bought a home for $180,000 your down payment could be around what it cost to move into the new rental house. The biggest difference is that you would own it.
If buying a home is on your bucket list than you are in the right place.
5 Tips for Future Homeowners to Get Started
2. Speak with a mortgage professional to get prequalified. It is essential to discuss with someone your loan options. They will tell you what types of loans you qualify for including the required down payment, monthly mortgage payments, and interest rates. You want to know this before you start looking so you can direct your real estate agent to homes within a certain price point.
3. Contact a local real estate agent, let them know what loan amount you are prequalified for, the “must haves” for your new house and they will set appointments for you to start looking.
4. When you find the right house your agent will walk you through the process of making an offer and once it is accepted by the seller your lender will begin the loan process. This can take an average of 45 days from start to finish so it does require some patience.
5. Once the loan documents are complete you will sign paperwork, typically at an escrow company, and the title will transfer from the seller to you. The home will officially become yours.
For many first time home buyers this can be an exciting and stressful time. It may take longer than you like to find the perfect home or a couple extra days for the loan to close but take heart, in the end you will have accomplished something great. You will be holding the key to your new home, the key to your future and your dream of being a homeowner will now be a reality.
