Homeownership is often the dream for many American families. People spend their entire lives building up to the day that they can finally buy their own house and settle down. However, there are several factors to consider when purchasing a home for the first time. And when you do succeed, there are still plenty of concerns after.
Not to worry—we’ll go over the factors, considerations, and other things you need to know about being a first-time homebuyer!
Things You Should Know Before Buying a New Home
- You Are in Good Financial Standing. An integral aspect of buying any property is the mortgage. To qualify for the best mortgage from the best mortgage lenders, you need to be financially ready. It entails the following:
A steady monthly income that is provable with various financial documents (payslips, tax returns, and so on). It will also be beneficial if the income is large enough that the mortgage will only cost about 20–30 percent of it per month.
A fair to good credit score. Although, it can be bypassed if you qualify for specific government programs like the FHA and the VA loan.
A low debt-to-income ratio (DTI). If this is not the case, first, you may need to pay off some of your old loans to get better deals.
- You Know the Local Area Well. The location plays a vital role in finding and buying the right home. After all, you need access to certain amenities and institutions. For example, if you have children, it would be best to know what the state of the local school district is like. It would also help to learn how far the nearest hospital is, what the neighborhood’s local culture is like, what the potential developments are in the area, etc. If none of these is a good fit, you may want to consider another location.
- You Are Ready for the Cost of Maintenance. Unless the home is brand new, you need to think about the cost of its maintenance. You need to determine what renovations and repairs you must make even before giving anyone your money during the purchase process. Some properties may be cheaper, but they might require more significant repairs. Beyond that, you have to consider the regular upkeep of the home. The plumbing, the roofing, the electrical system—these are all things you must acknowledge. In general, the older a home is, the more maintenance it will likely need. Important Note: You can use the state of the house as a point of negotiation. For example, you may make a lower offer that can be raised should the home seller make the necessary repairs.
- You Wish to Settle Down. Most people buy a home at a specific point in their lives: when they are ready to settle down. If you wish to set down roots, that is the perfect time to consider buying a home. After all, purchasing a house is a big decision; it involves many commitments, including your career and finances. You have to make sure that you’ll be happy with your decision.
Your Mortgage Broker in Los Angeles
Buying a home can be the most fulfilling thing you achieve in life. It could mean a place to settle down with a family, a way to ensure your financial future, or an opportunity to turn over a new leaf. To undertake this endeavor, you have to be ready, and the signs above may prove it’s time to purchase a house.
If you need the best mortgage lenders in Los Angeles to help you achieve the dream of homeownership, give Shannon Christenot a call at (818) 601-2231. I’ve been assisting potential homebuyers in finding their dream homes for over two decades.