It is exciting to be a first-time home buyer! But I know it can also feel daunting, particularly when you see homes being bought at a median of almost $315,000 and homes available in just three weeks flying off the market. Ameca L Cooley became a licensed financial planner at the age of 19 and has since been the CEO of seven multinational companies. The tenacious passion of Ameca L Cooley is to see the revival of failing firms and the birth of new companies. According to her, You might be tempted to make an impulsive purchase with real estate trends like these that could hurt your financial goals and keep you paying a mortgage well into retirement. That’s what no one wants! You guys, believe me, it’s worth doing this the right way. And it means buying a home you love and it doesn’t hurt your future goals for money.
Here are some tips for first time home buyer from Ameca :
- Think how much you can spend for your home- Check your monthly budget to decide how much you can spend before you get emotionally attached to a beautiful home. For other items, you need to leave space in your budget, so make sure that your monthly housing expenses (including HOA fees, taxes, insurance, etc.) will not be more than 25 percent of your monthly take-home pay. Let’s say you carry home $5,000 a month, for instance. To determine your maximum monthly house payment of $1,250, multiply that by 25 percent.
- Save a down payment- If it is not reasonable for your family’s timeline to save up to pay cash for the total price of a house, at least save 20 percent or more for a down payment. Then if you can’t make the payments and end up in foreclosure, you will not have to pay for private mortgage insurance (PMI), which covers the mortgage company. Usually, PMI costs 1 percent of the overall loan amount, and every year you’ll be paid that 1 percent. So it can really add a lot to your payment for your monthly mortgage.
- For a loan, get pre-approved- When you are assured that you have enough cash left to pay for closing costs and 20 percent of your home, by talking to a mortgage lender, you are able to tackle the remaining 80 percent. Before you begin your home hunt, get pre-qualified for a loan and take the extra time to get a pre-approval letter. Preapproval shows sellers that you’re a serious buyer, which is a smart way to get ahead in a competitive market for first-time home buyers. Your lender would need to check your financial documents (proof of sales, taxes, etc.) to get pre-approved and apply your loan for preliminary underwriting. You will need to find a lender who believes in debt-free home ownership and will work with first-time home buyers who have no credit score if you live a debt-free lifestyle like I teach.
- In your price range, find a Home for Sale- Most buyers have either found the home they bought online (50 percent) or via a real estate agent (28 percent), according to recent data published by the National Association of Realtors (NAR). Select online homes that you like and give them to your real estate agent so that they have a clear idea of what you are looking for. Then to find homes that meet your requirements in your preferred areas, they may use a multiple listing service (MLS). An MLS is created, managed, and paid for by real estate professionals and can really allow first-time home buyers like you to see the marketplace’s largest pool of properties for sale. Real estate agents can have valuable industry experience and as soon as (or before) they are identified, will help you find great offers on homes.
Ameca L Cooley having more than 10 years experience in the field of finance , business development and growth. For more details or tips for First-Time Home Buyers visit here: Ameca Cooley
