First Time Home Buyer?

You've finally made the decision to become a homeowner - kudos to you!  But now what?

photo curtsey of www.degrees.com

Home buying is going to be one of the biggest decisions you will make - along with school, career, etc. - and things can be a bit stressful.  Being an educated buyer, working with a great group of professionals, and making sound choices will help reduce your stress greatly!

Now that you have started working with a REALTOR® and Mortgage Lender, here are some things to consider before you start looking for a home - 

• Which loan program is right for me?
• In our area, the most common mortgage loan programs are Rural Housing, FHA, Conventional, and VA loans.  Interest rates with these programs are similar to each other, but their main differences are the downpayment and debt-to-income ratio requirements. 

• Do I have enough money saved up for my downpayment?
• If you choose a Rural Housing or VA loan, there is no downpayment.  With FHA or Conventional, your downpayment can range from 3.5-5% of the purchase price.

• What kind of monthly payment can I afford?
• Your monthly payment includes several different payees.  A monthly mortgage payment pays your principal and interest due on the home loan, private mortgage insurance, your city and/or county taxes, and your homeowners insurance.

• How long do I plan to stay in this home?
• Are you working on a 5 year or 10 year plan?  Could you possibly get a job transfer and have to move?  If you plan on extending your family, will you need a bigger home?  The loan amount you qualify for plays a big part in the home you buy, but so do these previous questions.  If you are looking for a home that you may live in short term, you may also want to think about resale value.  If you plan to stay in your home for several years, you have more freedom with your choice.

• What are closing costs?
• Closing costs are the lender and title company's fee that is paid at closing.  Once you have a contract on a home, your lender is going to give you a Loan Estimate and it gives you a  worse case scenario on what their fees will be.  During the offer negotiations on your home, you may be able to request the seller to pay these fees.

By working closely with your REALTOR® and Mortgage Lender, you will be on the path to finding The One in no time.  These professionals are looking out for your interests and should be there to answer any questions you may have.

Catherine Moody with Hammontree Real Estate

TN License #324769, Office License # 255083

865-599-8780 direct/text, 865-579-3868 office

cmoodyhomes@live.com

  Find me Facebook at Catherine Moody with Hammontree Real Estate or twitter at @cmoodyhomes