We are frequently asked by our readers and customers these common questions. While we are always happy to answer any questions a homeowner (future or current) may have, we thought it would be beneficial to answer the ten most common questions asked by first time home buyers on our blog today. So let’s begin!
1. That are the Benefits of Purchasing over Renting?
While there are several benefits to renting a home, there are even more to owning one. Instead of writing a monthly check that goes to a landlord, homeowners pay monthly mortgage payments that invest in their home. The money to a landlord is essentially gone forever whereas money spent towards a mortgage invests in the homeowner’s future while building equity, saving in taxes and living in a place that is personally owned.
2. How Do I Find a Quality Loan officer?
Finding a quality loan officer may seem difficult but it’s easy to find one through us. We have several expert, quality mortgage loan officers who are available to talk and work with you in your state, region or area.
3. Should I shop Around for Mortgages?
It is always recommended to shop around for mortgage loan rates and fees. Some lenders may have different fees or only be able to provide a set interest rate. By shopping around, homeowners guarantee they are receiving the lowest monthly payments and interest rates possible.
4. What are the Government Loan Programs that are Available to Me?
Conventional home mortgage loans cannot always provide the best rates or options making it important to look to the available government programs to find the right mortgage for potential homeowners. The most common programs include FHA home loans and VA home loans. Each of these programs provide ensured loan options that are fitting for purchasing new or older homes as well as condos, manufactured homes and property.
5. Is it Necessary to Hire a Real Estate Agent?
While it is not necessary to hire a real estate agent, it is always recommended. In most cases, hiring an agent does not cost any extra to future homeowners (agents on both side split the commission which is included in the home purchase) and this step can offer expert advice, contract reviews and someone who understand the process of buying a home.
6. I can’t afford a Down Payment; does that mean I can’t Purchase a Home?
For homeowners unable to make a down payment, there are several government programs available. These programs work with homeowners to insure loans and require no necessary down payments. There may however be closing costs, so we encourage homeowners to discuss these options with their lenders and real estate agents.
7. Are there any Hidden Costs to Home Ownership?
It is important to remember that closing a mortgage loan can include processing fees and other charges. We recommend homeowners discuss these with their loan officer (who may be able to waive a few) and their agent to ensure they are not getting taken advantage of.
While this is not a hidden fee, we feel it prudent to remind potential homeowners that a mortgage may or may not cover home insurance and does not cover utilities, maintenance or other home upkeep costs.
8. What Exact do Mortgage Costs and Payments Cover?
Depending on the type of mortgage a homeowner has, the mortgage costs and payments can cover different items. FHA mortgage payments often include monthly insurance costs as well as interest payments while conventional loans may not. It is important to speak with the mortgage loan officer about loan options and what a mortgage payment may cover for each individual homeowner.
9. What are the Steps to Buying a Home?
There are nine steps to purchasing a home.
- Homeowners Need to Determine Affordability
- Gain an Understanding of Rights and Explore Government Programs
- Go Loan Shopping
- Hire An Agent
- Go House Hunting
- Place an Offer
- Request Appraisals and Inspections
- Search for Home Insurance
- Go to Closing
10. The Home I want to buy is in need of Repairs, is it Possible to get a Mortgage for this Home?
It is absolutely possible to purchase a home in need of repairs. We encourage future homeowners to discuss loan options with their lender and seek out HUD or FHA insured loans. These government programs provide assistance in buying homes that need minor or major repairs for purchase.