Buying a house is a huge financial decision. If you’ve never done it before, it’s easy to feel like overwhelmed. This will help you ask some important questions to make the process smoother!
Below is a brief list of the typical Q & A’s First Time Home Buyers Should be asking!
1. Buying Vs Renting – What Is Better Of The Two?
The benefits of owning a home including, but aren’t limited to…
- It’s an asset!! YOU gain equity! vs Renting and paying for someone else’s asset to appreciate
- Enjoying tax breaks as a homeowner vs renting NO tax breaks
- Take advantage of the ever-increasing prices of property vs renting; pay more later for a home
- By 2020, DFW will have 1-2 million more residents which will undoubtedly raise property values.
- Security in your own home with Texas Pride of Ownership vs renting in which a landlord can evict or choose not to renew lease at any time.
2. Is My Credit Score Good Enough? & How Can I get the best interest rate?
Lenders use the credit score of an individual to access their lending and repayment history, and through your credit score, they’ll determine how much to lend and for how long. In addition to these factors, the main thing your credit score can affect is the interest rate. The higher your credit score the lower the interest rate will be and in reverse – the lower your score the higher the interest rate.
If you have a bad credit score, you can either buy or add some lines of credit to improve your score, or you can also fix your score manually by borrowing more and making the repayments on time. Talk to a professional about ways to increase your credit score if you are in that situation.
3. Do I Have Enough Savings for The Down Payment?
One thing that is keeping many people from buying their own home is the down payment. Because, depending on the lender, you might be asked to pay from 5-20% of the total amount initially. But don’t worry, you can start saving today and save enough money to pay the down payment as required by your lender. In addition, depending on your situation there are programs that can help with the cost of the down payment. Talk with your local realtor for more information.
4. Where Can I Get the Best Offer? Are there any special mortgage options for First-Time Home -Buyers?
One word of caution: Do not shop only for the best interest rate.. It is always best to find a local lender who will get you to closing on time. Check out Covenant Realty’s website for several highly recommended mortgage lenders. There are numerous first time home buyer programs and special programs for teachers, single mothers, the list goes on and on.
There are many questions you may have as a new home buyer so reach out to Covenant Realty Corp & one of our experienced Realtors would love to speak with you about the best situation for you! You may be in a better position than you think.