I work with a lot of First Time Home Buyers. It's an ideal market to buy and I can provide these buyers with the service they require- accessible, knowledgable and understanding.
If you are on the fence about buying, here are some things to consider:
Renters typically need 1st, last and security deposit when signing a new lease. If your rent is $1500, that equals $4500 up front costs.
If you purchase a $200,000 home using FHA financing (3.5% down), that is only a $7000 down payment.
Closing costs could be approximately $6000+/-, but you could negotiate that cost into your deal- which brings your out of pocket money to about $8000 (down payment + inspections & appraisal fees).
Your monthly payment at this sale price with 3.5% interest rate (estimated rate, there are lower rates out there!) is roughly $1300- this is less than your $1500 rent payment!
In a year, you can save $2400 by having a $200 less monthly payment PLUS you will get more tax deductions when filing your tax return.
Yes, you will need more funds at first, but the long term benefits outweigh the short term. Don't have the up front money?- you can get a gift from parents, family or a really nice friend :)
OOH and did you know that when you settle on your home, you will not have a mortgage payment for 30-45 days?! So you essentially save a month of rent/mortgage too!
Homes.com has put together a super helpful guide for first time buyers. It includes a short quiz to see if your ready to buy, important terms to know, financing information, the steps in the buying process, and more! Contact me to get a free copy!
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