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First Time Home Buyer?

new england home

 

Ready to make the jump from renter to homeowner? Buying a home can be very overwhelming, unless you have the knowledge and tools necessary for the home buying process. Let’s get started!

 

According to a Rent.com survey, 88% of property managers raised their rent in the last 12 months. There are no signs of this letting up. If you’re going to pay a mortgage, wouldn’t you rather it be YOUR mortgage, building YOUR wealth?

 

Before you start your search and possibly fall in love with a home that could be out of your reach, sit down with a lender. Learn about the various type of loans available, and how much you qualify for.

 

Finding an affordable mortgage that works within your budget may not be as difficult as you think. Keep in mind, it really is a great time to buy a home because interest rates are low!

 

1970’s – 8.86%

1980’s - 12.7%

1990’s – 8.12%

2000’s – 6.29%

Today – 4.42%

 

If your credit score isn’t perfect consider this: Credit score requirements for mortgage approval continue to fall.

 

Average FICO scores of Approved Loans:

 

ALL LOANS CONVENTIONAL FHA

2014 727 755 684

2015 730 757 688

2016 726 753 686

2017 722 751 680

MARCH 2018 722 752 677

 

If you think you need 15-20% down, think again. The average down payment for a first-time home buyer is 6%. Now, if you want to avoid PMI (private mortgage insurance), you will need 20% down, but many lenders will offer home loans with a lower down payment if you are willing to pay PMI.

 

Once you’ve qualified for a loan, it’s time to find a real estate agent. In addition to getting the services of an agent for FREE, as the buyer’s agent typically gets paid by the seller, you will have an awesome negotiator working for you, and, you will have protection when it comes to navigating the legalities of the contracts.

 

Christine Aubrey, Broker/Owner of Coldwell Banker Upton-Massamont Realtors encourages first-time home buyers to keep in mind that there are additional considerations to think about when buying a home. “There will be other expenses in addition to your down payment,” said Aubrey, “there is the home inspection, closing costs, and it’s a good idea to have a cash reserve of at least 2 months mortgage payments, if at all possible.”

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