What Every First-Time Home Buyer Should Know

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Simplify the Selling Process with a Real Estate Agent

If you're interested in putting your house up for sale, you first need to decide if you're going to sell the house on your own or if you want the help of a real estate agent. Some people do sell their homes without any assistance, but working with an agent simplifies the entire process for the seller. In this blog, you'll learn why it's a good choice to speak with an agent to list your house. We aren't connected to the real estate industry, but we have learned the importance of having an agent by our side. The articles you'll read on this site will explain the duties of an agent, such as advertising the property, filing the paperwork and staging the home. The expertise of a real estate agent can make this process more profitable and less stressful for sellers.


What Every First-Time Home Buyer Should Know

8 April 2020
 Categories: Real Estate, Blog

Buying a home is like a rite of passage. If you have reached a point in your life and in your financial career where you are ready to buy your first home, you may be a combination of emotions and feelings. While it can be a really fun and exciting time, it can also be stressful and overwhelming to think about putting all of your money into one investment. To ensure that you are making the right financial decision, there are a few things that every first-time home buyer should know. 

You Don't Have to Have 20% Down

When your parents or grandparents bought their first home, they may have only been able to do it with a conventional loan that requires 20% down. Although having 20% down on a home is ideal, it's not something that's feasible for everyone. Luckily, there are now both conventional and federally funded home loans that allow homeowners to put down as little as 4% down on their house, which frees up a lot of people to buy a home. Just remember that if you don't do a conventional loan, that you will typically have to pay mortgage insurance every month which can be several hundred dollars. 

There Are Closing Costs and Fees

In addition to saving for your down payment, you will also need to have enough money set aside for closing costs and fees which can be several thousand dollars. If you are worried that you are going to have a hard time paying for the closing costs in addition to realtor fees and your down payment, then you may want to negotiate the fees into your contract with your seller. For instance, when you are making an offer, you can say that you'll pay full price but that you want them to pay all of or half of the closing fees, which can free up some money for you. 

You Can Lock In an Interest Rate

Interest rates are constantly fluctuating, which can be either a good or a bad thing for you as a home buyer. Because interest rates are especially low right now, you shouldn't have much to worry about, but you still want to watch them. A lot of home lenders will be able to lock in a low interest rate about 30-90 days before you close on your house. If you run into issues with the purchase of the home, with your loan, or with anything else, you may risk losing that low of an interest rate. However, if interest rates continue to get lower, then you won't have to worry about missing out on anything because your lender will always get you the lowest rate that you are eligible for. 

Contact a company like Canyon Real Estate LLC to begin looking for houses for sale.