To own a home is perhaps the #1 iteration of the American dream. But beyond the fantasy of the white picket fence, the perfectly manicured landscape, and the lovingly rehabilitated kitchen, are stark realities about home ownership that must be negotiated. If you’re one of most homeowners, you’ll be taking out a mortgage, which comes with a great deal of responsibility. Below, peruse some helpful tips for the first time mortgage holder.
Get informed! You may be surprised to find out you qualify for programs that make financing easier, such as those sponsored by the Federal Housing Administration. These policies cater to different types of properties and owners, and may greatly reduce your down payment.
Accept help! If they are in the financial position to do so, a parent or relative may be a great resource to you. If they wish to lend or give you up to $13,000, they will not be subject to gift taxes--and you’ll be under less financial stress, too.
Do not rush! Take your time in perusing different properties, as well as the mortgage plans you are considering. Make a list of qualities you seek in a home, as well as your budgetary concerns. The plan that appeals to both of these is out there, but it may take searching.
Speak to a professional. While a bare bones mortgage may seem simple to you, the more involved options—such as adjustable rate loans, or custom term loans—may take a bit more time to wrap your head around. Don’t be afraid to ask questions and explore a variety of options.