We understand that buying a home can be overwhelming. This guide will help you better understand what to expect during the homebuying process, creating a stress-free experience.
Benefits of Buying Your First Home:
- Avoid rent increases and canceled leases.
- Opportunity to build your credit.
- Receive tax benefits by deducting your mortgage interest and real estate property taxes on your income tax returns.
- Build home equity.
What to Consider Before Buying a Home:
Financial Stability and Budgeting:
- You will need to pay your mortgage and utilities monthly.
- You must budget enough funds to cover costs for maintenance and repairs, property taxes, homeowners insurance, and possible HOA fees.
- Due to the ever-changing market, a real estate investment does not always increase in value. Your property value may increase or decrease over time.
- When you own a home, it is harder to pick up and move on short notice; therefore, you are obligated to sell the home first.
Process of Buying a Home:
- Begin researching homes and make note of particular homes you are interested in learning more about and possibly purchasing.
- Gather all of your personal financial information and determine how much home you can afford.
- Know your rights.
- Shop for a home loan. We can help you determine which loan best fits your current needs.
- Get pre-approved for a home loan.
- Contact a local real estate agent and begin shopping for a home. If you do not have a real estate agent, we can help you find one.
- Make an offer on your desired home.
- After the seller has accepted your offer, schedule a home inspection.
- Shop for homeowners insurance.
- Select the home loan that is right for you.
- Have the home appraised.
- Coordinate all paperwork.
- Close the sale and get ready to move into your new home!
How to Get Started:
- Create a financial plan to understand your credit and determine your budget.
- Work with a licensed real estate agent as they offer professional assistance, market knowledge, and up-to-date information about geographic areas, home listings, pricing, school districts, and more.
- Contact your local HOMESTAR Mortgage Loan Originator to find out what type of home loan you qualify for and how much you can afford to spend on a home. We handle everything in-house, creating a clear, customized path to homeownership.
Have additional questions or ready to get started? Contact us today!
We would love to help you through the homebuying process.