Housing Tips for First Time Home Buyers
Posted by Site Admin on
Your Connecticut Mortgage Company has some housing tips for first time home buyers. Although getting a new home is an exciting milestone for all of those who are ready to make that next big move in life, buying a home is a big financial responsibility. Being a first-time home buyer is not easy, but your NJ mortgage company is here to help! Make buying your first home a positive experience by being prepared and avoiding common first-time buyer mistakes. Contact your your New Jersey Mortgage Company today for more details.
Where to start:
Before looking for a home, or applying for a loan understanding your financial situation is key. “What people need to do off the bat, is solidify their current financial situation,” Shaun Osborne a financial advisor with Ameriprise Financial in Petoskey said. .“Some of the biggest mistakes I see people make is buying above their means,” he said. “They aren’t aware of the costs, and they become house poor.” A typical down payment is 20 percent of the home price, he said. But, the down payment requirement can be more or less depending on the loan terms.
How to get on the right track:
First time home buyers, college graduates with accrued school loan debt in particular, can still find a way to save the necessary funds. “It is a reality that people are coming out of college with a lot more debt. They’re finding positions, but they’re strapped with that debt. The best thing to do is understand their cash flow, track it and keep a budget. “People should also have at least $1,000 cash reserve and or three to six months of saved money.” Petoskey suggested setting up a separate savings or investment account.
Click here to view this article in its full entirety.