Things First-Time Homebuyers Wish They Had Been Told

If you're a first-time homebuyer, there are a lot of things you need to know to ensure the process is smooth and headache-free. Unfortunately, much of this information is learned the hard way through experience. We put together a list of things that first-time homebuyers wish they would have been told before they started shopping for a home. Knowing what to expect can help avoid costly mistakes and save time and money in the long run. Read on for tips from Lisa Moss, an  expert at The Moss Group, a premier real estate agency in Georgia and South Carolina.

Homes generally appreciate over time, so if you stay in your home for at least five years, you are likely to see a return on your investment. In addition, the longer you stay in your home, the more equity you will build. Equity can be used as a down payment on your next home or for other major purchases, such as a new car or college tuition. Although buying a home is a big commitment, it can be a wise investment if you are prepared to stay put for at least a few years.

 

It's important to consult with several professionals to get the most accurate information possible on everything from real estate agents and home inspectors to loan officers. Taking the time to consult with multiple experts ensures that you're getting accurate information about the property you're interested in. Additionally, you'll learn about any potential problems that could arise during the purchasing process. Being well-informed from the start helps avoid unnecessary stress or delays. Consulting with multiple professionals is a great way to ensure a smooth and successful home-buying experience.

Buying a house is a huge financial commitment, and many potential buyers believe that they need to have a down payment of 20% to qualify for a loan. This is not always the case. Several programs are available that can help potential homebuyers with their down payment, and many lenders now offer loans with low or no down payments. As a result, you can buy a home with a much smaller down payment than was traditionally required.

 

One of the main reasons people believe they need a large down payment is because they think it will help them get a lower interest rate on their loan. While it is true that a higher down payment can often result in a lower interest rate, the rates vary depending on many factors, and you may be able to get a low interest rate with a small down payment. Be sure to shop around and compare rates before making any decisions about the size of your down payment..

 

Further, people think they need a large down payment to avoid private mortgage insurance (PMI). PMI is required if you don’t have at least 20% equity in your home. However, you can avoid PMI even if you do not have this much equity. You can get a piggyback loan, which allows you to take out two loans  — one for 80% of the purchase price and one for 10%  — instead of just one loan for the entire purchase price. Another way to avoid PMI is to get a “jumbo” loan. Although this doesn’t require PMI, it typically has stricter requirements in terms of credit score and debt-to-income ratio.

 

Whether you need a large down payment to buy a home ultimately depends on your circumstances. Many programs and products are available that can help you buy with less money down than you might think. Do your research and talk to a lender about what options might be best for you.

 

Remember that a house is not a perfect asset. Like anything else, it requires ongoing care and maintenance to stay in good condition. For first-time homebuyers, this can sometimes come as a surprise. Many assume that once they close on their home, they will be able to enjoy their newfound asset without worrying about repairs or renovations. However, even the most well-built homes will eventually need some work done. First-time homebuyers should anticipate making upgrades to their home at some point in the future. By budgeting for these potential expenses in advance, you can avoid being caught off guard by unexpected repairs. In addition, by planning for renovations, you can make sure that any work done on the home adds value and enhances its curb appeal.

Before making such a big purchase, know what the space will be used for. Take into consideration both the current and future needs of the family. For example, a young couple may not have children in a year, but they may want to start a family in the future. In this case, a three-bedroom home would be better suited than a two-bedroom home. Conversely, for a home purchase that will be used as an investment property, a two-bedroom home may be a wiser and more manageable purchase instead of a larger one. By understanding how the space will be used, first-time homebuyers can be sure that they’re making a wise investment that will meet their needs today and for years to come.

 

Are you looking to buy an Augusta investment property or a first home? Contact real estate expert Lisa Moss to get started!

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