Getting A Home: Your Guide To Common Questions

By Stevie Duffin Updated on 7/20/2017

Be informed about the home buying process! It's is the most empowering thing you can do, and Lender411 is definitely the right place to start!

Is Buying a Home For You?

Many people have worries and concerns about the purchase of a home. Owning a home isn't for everyone, and if you're one of those people, it's better to find this out now than when you're locked into a long contract. 

Weigh out carefully whether the responsibility of homeowning is right for you.

Rent or Buy?

You might decide that renting is better for you than buying, because buying a home does have its drawbacks. Repairs will be entirely up to you, for instance, and moving can be a much more intense process since you'll likely have to sell your home instead of just taking off when your lease is up.

Why Buy?

On the flip side of the coin, there are many benefits to buying. You'll own a home completely your own, that you can remodel as you wish. You'll have a place to leave to your children if you want. You'll continually build equity in the property as well.

What Financial Preparation is Needed?

Line up your financing, set aside a down payment, and study all of the loan programs available. By doing your homework, you'll know exactly how much you can afford to pay and what it will cost you in interest. 

Take advantage of tools like mortgage calculators that can help you budget appropriately.

How Important Is A Credit Report?

Credit is a big factor in loans. Your credit score can be the reason you get a great interest rate --or a terrible one depending. Give yourself time to clean up a credit report that contains mistakes and dispute any errors. Reduce your monthly debt obligations now by paying down loan balances.

How To Find A Lender?

Shop around to compare rates and fees. Your financial institution can be a great place to start. Interview a few mortgage brokers and choose a loan product you completely understand and feel comfortable. 

How Much To Put Down?

The more money you put down, the lower your monthly mortgage payment will be. Also, if you can put down at least 20% of the loan amount you won't have to pay for private mortgage insurance, which protects the lender in case of loan default.

Are FHA Loans The Best?

FHA loans usually carry competitive interest rates, come with minimal down payment requirements and allow sellers to pay some or all of your closing costs, which can save you thousands. Investigate this option to find out if you qualify for an FHA loan.  

Is A Real Estate Agent Necessary?

There's so much information and valuable resources available online you might wonder why you'd need an agent at all. But all local markets vary, and a good agent can guide you by giving you information based on their knowledge and past experience. 

An agent can also help you to avoid making mistakes such as choosing the wrong home or offering too much. You can find an agent by asking your friends and family member for referrals, but make sure you are comfortable with your agent before committing to work with that person.

What Should Shoppers Know?

Remember it's all about location, location, location. Choosing a good location is important both for practical and aesthetic reasons. A home that looks good and is located in a desirable neighborhood in a great school district can do wonders for property value, and having a home that's relatively close to your employer can save you commuting headaches and fuel costs.

Ready to hit the pavement to start searching for your new home? You'll be touring homes in no time with the wealth of resources Lender411 has to help you get your research done and get out there!