Buying your first home should be an exciting experience. We can keep it from becoming an overwhelming one. First Time Buyers When you are ready to become a first-time home buyer, we are here to help you through the entire process.
But Millennials shouldn't feel pressure to get in on the action, according to financial experts. They're the largest group of homebuyers in the market today.
Buying a home is one of the most -- if not the most -- significant purchases of your adult life. So, you'll want to make sure you're really ready.
Here are three steps that'll help you do that: Sort your money out First and foremost, get your finances in order before skipping off to find your dream home.
This means understanding your total income and what it can buy. While there are lots of online calculators out there to give you some quick numbers, approach with caution.
This includes all costs involved in homeownership -- from monthly loan payments to insurance. But you may need to err on the conservative side if your expenses are high.
Next you'll need to figure out exactly how much you should have saved.
In some cases you might be able to put down significantly less, though you'll probably be required to pay mortgage insurance as well. But having a down payment isn't enough. Plus, you want to make sure you have enough to buy furniture, still pay your monthly expenses, and cover emergencies, too.
While that sounds daunting, a little careful planning can get you there over time. Budgeting is a big part of the process, so allocate what money you'll need by setting up a savings account toward getting your future house.
So where do you find the savings? If you're living paycheck to paycheck, it's time to get comfortable and take a close look at your budget to figure out where you can cut back. Financial planners recommend sitting down with a professional to look through your finances and form a game plan.
Elizabeth Miller an adviser with Summit Place Financial suggests living in a low-rent apartment to save for the down payment on your future home. Send us your money questions for a chance to be featured in the next Broke No More column. Shop around for your mortgage Since a home is a pretty big purchase, you're probably going to need a loan.
But there are a wide variety of mortgage options to choose from. Work with a professional mortgage provider before house shopping to go over the options and figure out what you qualify for. It's probably a good idea to stick to the basics.
The most common mortgage is a fixed interest rate over a number of years -- usually either 15 or The main benefit of a fixed rate is consistency, meaning steady payments over the life of the loan.
While 15 years of payments will save you money on interest and allow you to pay off your loan sooner, spreading the loan out over 30 years might make the monthly payments more affordable for you. The mortgage qualification process is called pre-approval. If you get pre-approved for a mortgage of a certain amount, the lender will give you a letter that you can present to sellers to show you have access to the money for the home you're bidding on.
To move forward with the pre-approval process you're going to need good credit, at least some money to spare, and a steady job. Keep in mind, mortgage lenders will require protection in case you default on paying your mortgage.
But a higher down payment could spare you the added expense of insurance.A: Let’s start with the premise you are never too old to buy your first home. We do not care if you are 60, 70, 80 or even 90 years old. We do not care if you are 60, 70, 80 or even 90 years old.
Whatever your reason for wanting your own home, taking the leap can be both exciting and daunting.
Yet, according to a National Association of Realtors survey, you're not alone; the number of first-time homebuyers was about 47 percent of all home sales in [source: National Association of Realtors].
How I Bought My First Home As a Single Person Buying a house when you’re single is pretty tricky. You might doubt your ability to negotiate a fair deal. I worried about all these things and more. The anxiety of buying a home can be just as challenging as the budget, so it’s important to have a plan for managing it, too.
Share Simple. Buying your first home can be one of the most exhilarating — and stressful — moments of your life. But armed with the right information, you can shop for a house, apply for a . Whether you want to move out of your parents’ home for the first time, own a home after renting for years or buy a place with a spouse or partner, purchasing your first property is a big step.
It takes a lot of preparation when you’re in this stage of your life, and a little luck never hurts. Your Wells Fargo home mortgage consultant, and our other home loan professionals, will help you: Find your price range.
We want you to succeed at homeownership. Estimate how much you may be able to borrow; Understand your credit.
Get informed, then explore your options. Why credit is important; Get preapproved. Be a serious buyer in the homebuying market.