first time homeowners

Mistakes Made by First-Time Home Buyers

Like most couples when they first become an item, they consider moving in together and maybe even buying their first house or condo. This is an exciting venture for the two of them, however, there are several mistakes they will want to avoid it they are truly first-time home buyers and don’t have a lot of experience.

At Tru-Pak Moving Systems we have been advising clients on moving processes for over 60 years. Since 1960, we have been serving the needs of clients looking for a moving company in Boone NC with award-winning services.

If you are a first-time home buyer, please get yourself educated on the pitfalls of buying a house and choose the most experienced realtor you can find that is familiar with the market you are purchasing in.

Here are a few helpful hints that all first-time home buyers need to be aware of.

Never Ignore or Try to Stretch Your Budget Too Thin

Since the 2007-2010 housing market crash, financial lenders have had to become much stricter with their lending guidelines. Today, new home buyers need to secure 20% of the home’s purchase price as a down payment to qualify for most home loans.

Most realtors will require first-time home buyers to get qualified from a financial institution prior to embarking on house hunting. Make sure you carefully calculate your home purchasing budget and the affordable monthly budget you will need to maintain the home. Here are some items to think about:

  1. Initial Down Payment, Closing Costs, and any home improvements needed.
  2. Monthly Payment After Home is Purchased (escrow the taxes into your monthly payment to avoid a large one-time fee for your real estate taxes yearly)
  3. Monthly Utilities including electric, water, sewer, cable, phone, internet, any Association Dues, & Minimal Maintenance Expenses for the house.

If you are buying a home typically your mortgage lender will not want you to have a mortgage payment of more than 25-28% of your gross monthly income. So, if you make $60,000.00 per year or $5,000.00/per month your monthly mortgage will be around $1,250.00/month. It is important to figure out just how much your down payment will be, then work backward as to the cost of the home you can afford. You never want to buy a home and struggle to pay your bills because you financially overextended yourself. If you are combining incomes this will hopefully give you more leeway but remember to stay within a solid budget.

Credit History

When purchasing a home, the lender will look at your credit score, current yearly income, any savings accounts, current bills, any indebtedness including outstanding loans, etc. All this information will be taken into consideration to see whether or not you and your partner are a safe investment. Your credit scores will also dictate the loan rate you will receive from the lender. You should always try and monitor your credit and make sure your loan-to-debt ratio is within the right limits.

Prequalified For the Right Size Loan

Always make sure that you speak with a lender to find out how much home you can afford and the different loan options that are available based on your needs. Getting pre-qualified will keep you on track and establish a budget when you are ready to start shopping for a home. If you are not satisfied with the amount you pre-qualify for and the home it dictates you can purchase, renting may be the best option until you can afford more house. Also, check to see if your state has a first-time home buyer assistance program as many states do.

Falling For the First House You Tour

Shopping for a new house or condo can be very exciting. Remember, it is the largest investment you have ever made. Never make a decision based on the looks of the dwelling alone. If you are not familiar with the neighborhood, do some independent research. Your realtor should evaluate the price of all homes you are interested in with what comparable homes sold for in that area. You never want to purchase a home over the correct price. Also insist on a home inspection as there could be major problems with the house or condo. Once you close on the property it will be your responsibility to make any repairs. Home inspections are the best indicator of whether or not the home is in good shape.

Never Hire a Random Moving Company

If you are looking for a mover in Boone North Carolina there are many companies to choose from. At Tru-Pak Moving we are very aware that the right choice should be based on many items including, years in business, licensing, bonded and insured, online reviews, and how professional the moving estimator is in providing a written estimate of all charges, with no hidden costs. If the price is too good to be true then the services probable are also, be careful. We are a moving company.

We specialize in residential, commercial, office moves, employee relocations, military, apartment, and long-distance moves. Call us today for a free estimate at (800)-659-1233.

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