When you buy your first home, you have a lot to learn about the homebuying process and the decisions that need to be made along the way. You need to understand many new terms and make confusing decisions about mortgages, homebuyer programs, and more. What is PMI and will you have to pay for it? What is better for you, a conventional loan or an FHA loan? What homebuyer programs are available to first-time homebuyers in your area? Are you better off using extra cash to increase your down payment or using the money to buy points and reduce your interest rate?
You need to learn how to work with real estate agents and loan officers. You need to be able to negotiate on price, repairs, and seller incentives.
Bottom line, you have a lot of information to pick up in a short period of time.
Do you think you can learn everything you need to buy a home from your parents? Think again. When was the last time your parents bought a home? The process of buying a new home, mortgages, and qualification requirements all frequently change. Consumer protection laws have changed and you will be facing new forms and disclosures that your parents have probably never seen.
To add even more pressure, buying a home is probably the largest purchase you will ever make. Making a wrong decision can cost you many thousands of dollars over the life of your mortgage.
How can you learn more about buying a home?
If you don’t have the knowledge or skills you need to buy your first home with confidence, engage a non-profit organization like the HomeOwnership Center of Greater Dayton. Classes and interaction with experienced coaches will help you prepare your finances, understand the homebuying process, and ensure you make good homebuying decisions.
Call us at 937.853.1600 or visit our Homebuyer page to learn how we can help you buy your first home.
This is the sixth post in the series, Are You Ready to Buy Your Own Home? You can read the other installments in the series by following these links:
Part One: Is Your Credit History Good Enough to Buy a Home?
Part Two: Have You Saved Enough Money to Buy a Home?
Part Three: Are You Mortgage Ready?
Part Four: Are You Planning to Stay in the Home for the Next 5 to 7 Years?
Part Five: Are You a Realistic Homebuyer?
Part Six: Do You Know Enough About the Homebuying Process?