Buying your first home is of course an important step in the relationship of a young couple. It is however not an easy task given the ever rising mortgage and interest rates. This is especially true for young couples since they both have little or no experience about looking for or buying the right home. This article is prensented by Fort Worth mortgage company and will give you simple tips and steps you can follow to make sure that you safely purchase the right home.
As a young couple, you should first sit and discuss about what kind of home is good for you. You should take each of your partner’s considerations seriously so that you are able to determine what you want as a couple and individually. Your home is a big part of your future. Young couples should therefore seriously consider issues such as children when making a decision about the home they want. Other aspects could be the design and size of the house.
Equally important about the house, is the location. Couples should choose a location that they both are comfortable living in. As a couple, you can choose locations with low crime rates or a location that is a short distance to the city due to access to shopping malls and good schools. Making a list of these considerations is important and will make finding the right home a whole lot easier.
Conducting an online research is very important. This is recommended since it could save you energy and money. It is very easy and virtually costs nothing to access the internet. Searching for homes online will yield a lot of information such as the average market prices of the home you want and statistics about crime, weather, traffic and social amenities of the location you identified. Such information will give you a general view of the area and the types of homes available. The general price of homes in the area will also help you plan your financial budget for buying your home.
Hire a Real Estate Agent
To ease the process of getting the home that you are looking for, it is advisable to get a professional. Real estate agents have enough information and experience about a certain location and only need you to specify what you want and they can easily get you the right home. A good real estate agent will advise you on what home to buy as well as negotiate the price and make sure all the paperwork is handled. This helps smoothen the process and ensures that you do not make a mistake in the process of buying your first home. Choose an agent that you find is honest and easy to work with.
It is very important when buying a home to ensure that you are financially stable to fund the purchase. You have two options when it comes to buying a home. You can buy in cash or you can get a loan. Make sure that you are able to afford the home you choose so that you are not financially constrained in the future as you pay for your home loan. Most young couples acquire a home loan from a mortgage lender, for which they are required to make a down payment of 20% and monthly mortgage payments to cover the loan. To increase your chances of getting a home loan from a mortgage lender, it is advisable to maintain a good credit. This way you can make a small down payment without having to get a property mortgage insurance.
To make sure that you are financially comfortable when paying a mortgage, you should ensure that your monthly payment does not exceed 30% of the total income you get as a couple. This ensures that you are able to cover your other financial needs as you pay the mortgage.
Additionally, it is important to make a monthly budget for all the expenses you are expected to incur as a couple. This way you will not put too much weight on your income and you will be able to cover unexpected expenses that may arise in the future.
It is important to realize that even after paying for the down payment there are other immediate expenses such as moving, maintenance and furniture costs. Most young couples may choose to cut on certain luxuries in order to reduce expenses and make sure that they fund their mortgage comfortably.