Most prospective homebuyers will admit to feeling both excited and anxious about their decision to purchase a home. Since most are living in rented apartments or houses while preparing to purchase, the idea of owning their own space can be especially appealing.
But the appeal of ownership can be overshadowed by concerns about the potential financial burdens of purchasing and owning a home. If you are currently in the market to purchase a home—or planning to be soon—here are some helpful financial-based tips designed to improve your experience as a first-time homebuyer.
Explore low or no down payment options
Home prices are still on the upswing, so finding the right mortgage is more important than ever. For first-time buyers, home loans offered by the Federal Housing Administration (FHA) or the United States Department of Agriculture Rural Development loan program can be an excellent way to reduce or eliminate the need for a large down payment.
First and repeat home purchasers who are currently serving in the military, or those who have been honorably discharged, may also want to consider a VA mortgage. These are issued through the Veteran's Administration. VA loans feature zero down payment options and, like some other government loan programs, can offer a more relaxed application and approval process than a conventional home mortgage offered through a bank or credit union.
Be willing to buy a more modest home
Another way to ease the financial burden of homeownership as a first-time buyer is to be willing to buy a more modest home, even when approved for a higher price range. Buying a smaller home or one in a less expensive area can mean significantly lower monthly mortgage payments. You can also save on other costs involved in owning a home, such as insurance, taxes, utilities, and maintenance.
Ask your real estate agent about available grants or programs
Many communities and organizations offer housing grants and other programs aimed at making homeownership more affordable for first-time buyers. For example, many communities offer housing grants for homebuyers who are employed in emergency or public service occupations, such as fire and emergency service personnel, the medical profession, and teachers.
In addition to assistance with this type of information, a trusted agent will be able to help first-time buyers save money by negotiating the best possible price and terms when making an offer to purchase.
For more information, contact local home buying realtors.
