Budgeting for buying a home can be difficult enough when you're just weighing mortgage options and a purchase price. But there are many other factors that go into the cost of home ownership. Some of
3 Common Fears of First Time Home Buyers
It is perfectly normal to experience fear, anxiety, and doubt when you are buying a home for the first time.
Millions of people have bought and sold homes. Why can’t you be one of them? Everyone deserves the right of the American Dream of owning their own home.
Let’s tackle the three most common fears.
#1 – “I can’t afford it.”
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Home ownership isn’t as expensive as one may think. As rental rates continue to increase, in most cases, it is cheaper to own than it is to rent. Think about it. Why should your landlord be the one to gain equity?
Yes, a mortgage usually requires a down payment. Saving for a down payment requires budgeting. Consult with a loan officer to find out how much you will need for a down payment. A loan officer can give you tips budgeting so that you can start saving. You should find that you can still live comfortably and enjoy yourself by adjusting, prioritizing and considering the way you spend money while watching your bank account grow.
#2 – “I screwed up my credit.”
Perfect credit is not a requirement for getting a mortgage. There are lenders that will work with buyers who have 580 credit scores. Sure, other requirements apply like having at least two years of consecutive work history and debt-to-income ratios, but it still opens the door to home ownership for more people.
If poor credit isn’t your issue, but not having enough credit is, please know that this is easy to overcome. It may take time, say six months to a year, but as long as you follow a plan that has been suggested to you by a loan officer, then you will definitely get your scores up to where they need to be in order to get pre-approved.
There are credit programs available to anyone who wants to increase their credit score. One in particular that I trust is QRES, Qualified Real Estate Solutions. You commit to a six month program, and they guarantee that your scores will improve enough to be able to get pre-approved to buy a home. They are so confident that their program works if you follow the plan, that they offer a 100% money back guarantee. Plus, when you buy a home and allow me to represent you as your agent, then you receive $500 credit towards your closing costs.
#3 – “I’m Clueless. I have no idea what to do.”
It’s okay. Buying a home is a complicated process. But, given the financial responsibility involved, wouldn’t you want it to be?
The first step is to hire an agent. You only need one agent. He/she can help you with any listing on the market. There’s no need to contact multiple agents. The only agent you need to communicate with is the one that is going to write up your offer. An exception may be if you go to an Open House, but you should disclose to the hosting agent that you have your own agent.
Real estate agents are prepared to, and want to, assist you. They also want you to stay in communication. They want to hear your thoughts, understand your needs and wants, answer your questions. Don’t worry, you aren’t bothering them. They want to take the journey along with you. The more you involved them in your thought processes, your journey, the more valuable they can be. What they expect in return is loyalty and honesty. But, don’t confuse agents for genies or magicians. And, be respectful of their time. Your agent isn’t a servant at your beck and call. Plan ahead, be on time, do what you say you are going to do. You know, responsible adult stuff.
The next step is to complete an application with a mortgage company or bank. You will be assigned a loan officer. The loan officer and his team will guide you through the financial part of the home buying process. Be honest and upfront with them. Listen and understand what they tell you. Don’t be afraid to ask questions. They would rather you be informed and educated.
A pre-approval letter is good for 45-90 days typically. Once you are given one by your loan officer, forward it to your agent. Then, it’s time to start home shopping!
New clients are always welcome. Do you want to be one of my future clients?
Sherry Hamm, REALTOR®
Clayton Nash Real Estate
Sherry Hamm obtained her Texas Real Estate License in 1999. Sherry is a devoted full time residential Real Estate Professional focusing primarily on Houston's Westside, Katy, Northwest/Southwest Harri....