Buying your first home is a very rewarding feeling of accomplishment. However, some first-time buyers find the whole process a little nerve racking due to lack of knowledge. With the right agent on your side walking you through the entire process the sale can be a reward in itself. At the Eastvale Real Estate Group we work closely with all our clients assisting them through the entire process of finding there dream home, acquiring financing and escrow.
When asking yourself these two simple questions, keep in mind the benefits of becoming a homewoner over a renter.
01.I'm renting now, why should I buy?
A home is an investment for your family and future. One of the benefits of owning a home is the ability to write-off your mortgage interest and property taxes on your federal and state taxes each year. In addition, the value of your home will increase over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.
02.How much money will I have to come up with to buy a home?
Well, that depends on a number of factors, including the cost of the house and the type of mortgage you qualify for. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
When you make an offer on a home, if the offer is accepted your Realtor® will deposit your earnest money into an escrow account and it will be applied towards the balance at close of escrow (settlement). If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies based on the purchase price. Typically closing cost is an average of 3-4% of the price of the home and covers various lender fees, processing expenses, recurring and non-recurring cost. During your loan qualification your lender will supply you with an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.
Remember these important tips on buying your first home:
- Hire a real estate professional who can help you find, finance and move into your dream home
- Get pre-qualified for a loan
- Decide what mortgage payments you're comfortable with
- Make a list of everything you want in a dream home
- Decide on the top three neighborhoods you want to live in
- View open houses within your preferred neighborhoods
