Finance Buying your first home is an exhilarating time in your life, however it also can bring some worry. The procedure is overwhelming quite often, so first-time home-buyers often do not know what things to expect. When analyzing the cost of a home, you might forget to include some of the additional fees that come with the process. One of these costs is a down payment, that is usually required on a mortgage loan. Although 20% is a common goal, many lenders allows you to put down less. Doing so could lead to the payment of private mortgage insurance, which would increase your total payment per month.
What to prepare for When Buying Your First Home
It is possible to qualify for a larger loan than you anticipate, ensure that you consider how much you can actually afford. Much of the costs you may need to pay in combination with your estimated monthly payment include mortgage insurance, HOA fees, homeowner’s insurance premiums, and property taxes. Factor these into the total monthly payment to ensure you know how much you’ll actually have to pay.
Once you close on a mortgage loan, you will likely have to pay the closing fees together with your down payment. Some lenders will roll the closing fees into the loan, however this means you’ll be paying interest for 15 or 30 years on those costs, according to which loan type you select. Closing fees vary, however your lender can provide you with an estimate of what you will need to pay.
Moving also comes with a cost. Even though you may do it yourself, you will have to pay for the boxes and packing materials, combined with the cost to rent a truck to move your items.
As you go through the process to purchase your first home, being prepared and being aware of what costs to expect could help you feel less overwhelmed. Additionally you can walk into your new home knowing you can afford the monthly payment and enjoy the many benefits of home-ownership.
Have a questions or concern? Nick, Cindy & Nicholas Davis with RE/MAX Premier Group are here to assist you with all your Real Estate Needs. We are always available at 813-300-7116 to answer your questions or you can simply click here and we will be in touch with you shortly.
Need to get started with your mortgage process? You can contact Kyle Edwards with Iberia Bank at 813-495-5131, or simply click here to start your online application.
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