Purchase

Most of us have the dream to own a house and settle our lives! A small yard or a barbeque; a grand mansion with a dash of indulgence or a smart home that is just right. Turn the wish to something real – for if you plan it well, the goal is in your reach.

Are you ready yet?

The classic question that haunts every potential buyer who is on the brink of a purchase thought process – Am I making the right decision? What about my rent? In most cases, it is always better to buy than to rent. However, applying your due diligence pays off – Sleep on the idea for a few days. For a first time homeowner, consider if your financial state allows you to pursue a purchase or to start with a rented home and buy when you are absolutely ready. With the Internet era and mobile age, there are Mobile Apps and sites that help you to do a quick calculation for all the equations. Do the mental math of cuts and cross and make the right move. Pick up a phone and dial First Choice when you feel you need some consultation in planning and deciding.

What is the right fit?

So you decided and now is the chance to pick your choice. It may not be that simple as selecting the right shoe. Lots of houses in various sizes and luxury. Would you need a lakeside grand building suggesting affluence or something that is of the right budget? A general thumb rule says you can afford a home that is three times your annual income. There are online calculators in assisting you to arrive at a decently similar number for your planning. Be sure to cross-check your monthly income, the expenses, the credit rating etc., which helps to plan. The main word of caution is to ensure that you don’t get something that is way beyond your budget, leaving you in debt. Compare the prices at various areas, the amenities, and the type of neighborhoods and so on. A real estate agent could help you give the correct guidance to select the one from multiple options. The team at First Choice Lending could guide you for the whole process. With specific information and the right guidance, we can help making this journey easier.

The Helping Hands

The myth that worries every prospective homebuyer at first is the bulk amount that needs to be paid. However, you needn’t pay a lot of cash upfront to own a home. Mortgage, the magic keyword comes to your rescue. First Choice, the experts in mortgages can help with the right choice and have discussions to make the process easier. We can support in assessing the eligibility and also see the support options for your monthly payment. With our expertise in New Home purchases and refinances, we could offer recommendations and see how qualified you are for a home loan or a Mortgage which relates to your monthly income, credit score and so. As common sense, a bigger income and better credit score equates to the eligibility of a bigger loan. A down payment is normally paid for the buying process, which is about 3-20% of the total amount. A quick check of the multiple loan programs and the rate of interest would be vital as it helps to gauge your payment capacity and prevents any scenario that leads up to hardship or debt. Choosing the tenure of repayment is another aspect that can be decided based on your income so that you can plan on closing it sooner than later.

Quick Thought on Costs

A small thought on the costs involved in the whole process would really give a big picture to the homebuyer. Starting with the down payment, there are a few cost aspects to bear in mind. To close the deal and mortgage, there would be some fees as well, generally termed as the closing costs. There would be miscellaneous fees charged by those involved with the home sale (a lender for processing the loan, the paperwork, a land surveyor, local government offices etc.). On an average, this would be about 2-5% of the final purchase price. The other typical costs include any insurance like the Home Owners Insurance, the maintenance costs, the utility costs and any applicable property taxes. A monthly mortgage repayment amount is the fixed cost that is attached to a loan based home ownership.

Getting Started

The process starts with all the necessary groundwork for all the aspects mentioned above and culminates in giving an offer and signing a contract. Beginning with getting the qualification of loans, credit history and others; be prepared for creating and maintaining all the relevant documentation. This could come in real support for all the approvals and ensuring that the paperwork goes through smooth.

A Few thoughts and some homework, and you would be a proud homeowner!