The home buying process can be a bit overwhelming, especially for first-time home buyers. It’s one of the largest investments a person will ever make, so it’s totally normal to have a lot of questions along the way. Here are some questions many first-time buyers have when they are looking to buy their first home:
What Are the Benefits of Buying?
Buying a home instead of continuing to rent will give you some great benefits. When you rent, the monthly payments you are making go right to the landlord and you gain nothing from those payments. When you buy a home, you are building equity with each of those monthly payments on your mortgage. Some other benefits include tax breaks, freedom (no landlord to tell you what you can and can’t do) and appreciation in value. These are only a few of the many wonderful benefits of buying a home!
Is There a Difference Between Pre-Qualification and Pre-Approval?
You tend to hear these two terms a lot when people are talking about the home buying process. A lot of first-time buyers are unsure of what they exactly mean. Getting pre-qualified for a loan is more of an estimate of what you might be able to borrow. It is not a guaranteed number since your information has not been verified yet. That’s why being pre-approved holds more value as a home buyer. When you are pre-approved, they base that off of information such as your credit score. It is a good idea to get pre-approved before you start house hunting.
Am I Ready Financially?
Homeownership can certainly be expensive. You have your upfront costs such as a down payment and closing costs. You also need to be financially ready for any repairs your home may need. You’ll want to answer a few questions for yourself before you can determine if you can afford a home. Do you have a steady job/income? Do you have enough in your savings account? Can you afford everything from mortgage payments to insurance? These are a few of the important questions you will need to answer for yourself to make your decision if you are ready to buy a home.
Do I Need to Put 20% Down?
Saving up 20% for a down payment on a home is difficult for most people and can certainly take a long time. However, it is not required to put that much down. You can put as little as 5% down if that works better for you. Your monthly payments will be higher, but it is still possible to buy a home with a down payment less than 20%
Do I Need a Real Estate Agent?
Hiring a real estate agent isn’t a requirement when buying a home. However, it is highly recommended. The home buying process can be complicated and overwhelming, especially for first-time buyers. Hiring a real estate agent will give you peace of mind knowing that they have the experience to help find you a home that fits your lifestyle within your budget. Buying a home can be a stressful process and hiring a realtor will relieve a lot of those points of stress, making the home buying process much more enjoyable for you.
Still looking for your first home? Get help from one of our fantastic agents! Visit our website to find an agent that’s right for you!
First Weber sells real estate throughout Wisconsin: Metro Milwaukee and Southeastern WI, South Central Wisconsin/Greater Madison, Central Wisconsin, Northeast Wisconsin, Western WI, parts of MN, Michigan’s UP and Wisconsin’s great Northwoods. You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com