Regardless the inclination towards rental properties, a majority of the US citizens prefer their own house. Homeownership, after all, has its perks and is also better for the economy. In fact, research shows that homeownership harvests numerous social benefits too. Still, purchasing a house is one of the biggest strategies for most people. As a first time homebuyer, therefore, you should consider more than the different programs out there, whether you are in Texas or any other place. Here are four questions you should ask yourself before buying your first home.
1. How much Mortgage can I Afford?
Like other big purchases, a house needs substantial finance. Therefore, before you plan on your favorite two- or three-bedroom house, factor in the expenses you are already managing to find out how much more you can afford. This will also help decide on how big a house you can afford, besides its location, as houses in centralized locations would usually cost more. You can sit with a financial advisor or a loan banking officer to evaluate these requirements and learn more about optimal first time home buyer programs.
2. Which Loan Programs do I Qualify for and Should Choose?
There are several mortgage plans in the market. You need to find out not only the loan programs that you qualify for, but also the ones that best cater to your needs. For instance, if you live in a rural area and want to construct a house there, a USDA home loan could be right for you, but your household income should meet certain guidelines. If you are a veteran or an active military member, then a VA loan may be your best bet. However, before you meet a VA approved lender, you should first meet a loan banking officer who can help you provide more details on the loan type and suggest the optimal housing loan for you.
3. What are the Costs Other than Mortgage?
It can be easy to forget, but homeownership involves costs more than mortgage. You have the property taxes, closing costs, and the mortgage insurance. Next, there’s the closing costs that if not evaluated correctly can bump your total expenditure and put you in an awkward financial situation during the transfer of the home title. If you are purchasing a house in an area like California, then you might have to pay for hazard insurance too.
4. Should I take the Assistance of a Loan Officer?
When you are purchasing your first home, you need the assistance of a professional who can guide you to optimize your investment. An experienced loan officer can help evaluate your financial condition to suggest the optimal first time homebuyer loan program and meet a qualified real estate owner to get you your good home. In addition, loan officers can also assist during the appraisal process to ensure you don’t pay more than the fair market value and negotiate closing costs with your lender.
Purchasing your first home, be it in Texas or any other location, is a big decision. To ensure you don’t regret the it later, evaluate your finances well in advance. Find out how much more expenses can you afford and if you are mentally ready to purchase a home. Take the assistance of an expert loan officer, if needed. These professionals often have good links with other people in the real estate industry and can help you navigate your way through the mortgage journey successfully.