When it comes to buying a home for the first time there are a litany of questions you will have. When you equip yourself with a knowledgeable realtor, s/he will be able to answer those questions for you. The following are some of the most frequently asked questions by first time home buyers.
What are the benefits of owning over renting?
This frequently asked question comes with a plethora of responses. Of course one of the greatest benefits of owning a home rather than renting is the pure feeling of satisfaction and accomplishment of owning. In addition to that there are tax breaks involved with owning a home, freedom from a landlord and so much more. A good realtor will explain all of these benefits thoroughly to their first time home buyers.
Am I ready to buy a home?
This is another very frequently asked question among first time home buyers. The answer to “are you ready to buy?” is dependent upon many factors. The obvious first factor of buying a home is accessing your job or career situation. If you have had a steady well paying job for at least the past three years you are probably ready to buy a home. If you don’t you are most likely not ready for home ownership just yet. The next factor when it comes to readiness for home ownership is your bill paying history and outstanding debts. If you owe an exorbitant amount of money in student loans or credit cards you may not be prepared for home ownership. If you have a poor track record of bill paying you may also not be ready.
How Much do I Need for a Down Payment?
Probably the largest obstacle for first time homebuyers is saving money for a down payment. Most lenders expect to receive between five and twenty percent as a down payment on a home. This figure will vary according to the lender but no matter what, first time home buyers need to create a budget that allows them to put a down payment on their home.
If you are a first time homebuyer, congratulations! While the process may seem overwhelming, the end result is worth all of the questions and frustrations. By knowing the answers to these commonly asked questions you are already one step ahead of the rest of the home buying pack!