Thinking of Buying a Home? Here’s What You Should Know About Making the Leap
While it’s well-known that millennials have been slow to purchase a home, they are now a big part of people looking to take that leap. There has been a lot of speculation as to why this generation has taken the time they have to purchase a home and there is not one single reason that explains the trend. The truth is that it might be a combination of various factors and generational characteristics, but one of the things that the Brian Burds Home Selling Team tries to do is to educate our clients to have a better idea of how the process works so they understand it is not as daunting as it might seem at first glance. Many people wait for a long time due to a lack of understanding of the way things function.
Learn the Ropes- Talk to An Agent That Helps You Look for Options
Many people who have never embarked on the home purchasing process might stay away due to a lack of financial knowledge or —what is often referred to as—financial literacy. So let’s take a look at some myths that might keep people from even considering buying a home as a possibility for them. Some people believe that you must have a twenty percent down payment for the deposit. This number will allow buyers to skip out on private mortgage insurance, but it is still possible to get a home without having that magical 20 percent. There are loan programs available to people that have less, especially if they are first home buyers.
Know and Understand Your Credit Score
A once a year look at your credit score can give you an idea of where you are. A trusted real estate agent can help you look up your score and make sense of it in the big scheme of things. Often times people will look at their scores but not be sure exactly what that means or how that affects their buying decision. You can do this on your own through various sites and it won’t cost you any money or affect your score.
Become Acquainted with the Financial Outlook
So how much is the process going to cost? What are closing costs? According to some reports, 63% of millennial buyers expressed buyer’s remorse after purchasing their first home. Much of this was due to closing expenses, home maintenance costs, and other unexpected expenses. Understanding what these costs are ahead of time will prevent homeowners from feeling this way and being prepared for the commitment ahead. Simply factoring in some maintenance costs and being rightly informed of the closing process, will make the process smooth sailing.
Consider your savings and how you can make the most of them throughout the process. Shopping around for the right lender can actually save you a considerable amount of money.
The Brian Burds Home Selling Team is here to help you navigate the process, but also to understand it and know why crunching a few numbers ahead of time can save you headaches later on. The home buying process doesn’t have to take the wind out of you. It can be fun. In fact, working with a guide that knows that common trials, tribulations, and doubts, will arm you with the knowledge and understanding of what you’ll see throughout.