First Time Home Buyers

What do First Time Home Buyers need to know?

 

What can I afford?

First things first: it's time to review your financial picture, consider the expenses involved in owning property, and determine your budget. Can you afford to buy a home? Let's find out.

Am I Ready?

All first time home buyers should take a hard look at their personal finances.
Get a better grasp of your financial situation by using this  income worksheet.

The Costs of Home ownership:

As a renter, you do not have to pay for a variety of regular and as-needed expenses that are the responsibility of the landlord. When you buy a home, you take on these costs as well. Some fees are part of your monthly mortgage payment while others are not. Among the costs shouldered by homeowners but not by renters:

• Property taxes and special assessments
• Home/hazard insurance
• Property maintenance
• Association and membership fees (for condominiums, townhomes and some developments)

 

Credit and Credit Histories:

Your credit history—how you’ve borrowed and repaid money in the past—plays a big role in your ability to purchase a home. It’s one factor used to determine your credit score, generally called a FICO score. FICO scores range from 300 to 850, and lenders believe that borrowers with higher scores are more likely to repay their loan.

First Time Home Buyers should obtain a copy of their credit report by contacting the Consumer Credit Counseling Service at 617.426.6644 .

Down payments

The down payment, the initial payment made when buying a home, will impact your ability to get a mortgage as well as the loan’s interest rate and terms. Lenders view buyers who contribute their own funds to the purchase of a home as a better overall credit risk.

If you're making a down payment of less than 20% of a home’s price, you’ll also get mortgage insurance, which banks require in exchange for the larger loan. MassHousing mortgage insurance includes MI Plus, a unique borrower protection that covers principal and interest payments if you lose your job.


It's always a good idea to speak to a professional before starting your home buying process.
You can contact me anytime with any questions at billyd@kw.com

This is just the beginning of the process, more First Time Home Buyer advice to come!