what to know when you're a first-time homebuyer
TRANSCRIPT
Wednesdays | 3 p.m. ET#CreditChat
What to Know When You’re a First-Time Homebuyer
Join our #CreditChat every Wednesday at 3 p.m. ET. This week, we talked about important things to know when
buying your first home.
ex.pn/firsthome
Wednesdays | 3 p.m. ET#CreditChat
How do you decide if you should be renting or buying a home?
A mortgage calculator is a great resource to see if buying is financially
viable.
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Wednesdays | 3 p.m. ET#CreditChat
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Richmond American@RAHomes
You have to take a variety of things into consideration. How much can you
afford? How long do you need the place for?
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Wednesdays | 3 p.m. ET#CreditChat
”Leslie H. Tayne, Esq@LeslieHTayneEsq
Consider how strong and stable your cash flow is, plus your living
situation- how much flexibility do you want?
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Wednesdays | 3 p.m. ET#CreditChat
”Miriam Cross@MiriamSCross
Have enough for a down payment and still have cash in reserve for
things that will come up.
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Wednesdays | 3 p.m. ET
Lenda@lenda #CreditChat
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Evaluate the likelihood of life events occurring that could change your
financial circumstances.
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Wednesdays | 3 p.m. ET#CreditChat
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Brad Sherman@shermanwealth
Ask yourself why you want to buy. Does it make sense for your situation and
goals?
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Wednesdays | 3 p.m. ET#CreditChat
”Money Crashers@MoneyCrashers
Wednesdays | 3 p.m. ET#CreditChat
What are tips for getting the best rate on a home loan?
Get your debt to income ratio as low as possible. You’ll get a better rate
and you’ll increase your credit score.
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Wednesdays | 3 p.m. ET#CreditChat
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Lenda@lenda
First thing you should always do is shop around. Don’t just settle for the first
rate you’re given.
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Wednesdays | 3 p.m. ET#CreditChat
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Leslie H. Tayne, Esq@LeslieHTayneEsq
Check your credit score and take steps to improve it if necessary.
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Wednesdays | 3 p.m. ET#CreditChat
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South State Bank@SouthStateBank
Look at credit unions and community institutions when shopping for a
home loan. They tend to offer great rates!
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Wednesdays | 3 p.m. ET#CreditChat
”Kasasa@Kasasa
When in doubt, consult a loan officer or financial advisor about your
specific situation. He or she may have some insight.
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Wednesdays | 3 p.m. ET#CreditChat
”Richmond American@RAHomes
Wednesdays | 3 p.m. ET#CreditChat
What should you do before applying for a home loan?
Take a hard look at your own finances and expenses and shop around before
applying for a home loan.
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Wednesdays | 3 p.m. ET#CreditChat
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Brad Sherman@Shermanwealth
Keep in mind your mortgage payment is only one of the expenses you’ll have. So
don’t devote 100% of your housing budget to it.
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Wednesdays | 3 p.m. ET#CreditChat
”Money Crashers@MoneyCrashers
1. Know what you can really afford in the way of payment.
2. Get your credit in shape.3. Shop around.
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Wednesdays | 3 p.m. ET#CreditChat
”Kristy Welsh@WelshKristy
Boost your credit score as much as possible, make sure you know what you can COMFORTABLY afford, and build an
emergency fund.
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Wednesdays | 3 p.m. ET#CreditChat
”Leslie H. Tayne, Esq@LeslieHTayneEsq
It’s also about what you shouldn’t do - for example, try not to make major credit purchases before your loan is
approved.
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Wednesdays | 3 p.m. ET#CreditChat
”Richmond American@RAHomes
Wednesdays | 3 p.m. ET#CreditChat
How do you forecast a housing budget?
Start with a budget and cashflow for your current situation. This will help back into what you can afford/down
payment.
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Wednesdays | 3 p.m. ET#CreditChat
”Douglas A. Boneparth@dougboneparth
Identify ALL the costs involved. Transfer fees, insurance, repair and
maintenance, deposit, etc. Then work backwards.
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Wednesdays | 3 p.m. ET
Piggie Banker@PiggieBanker #CreditChat
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A good budget won’t just reflect your mortgage payment. It’ll also factor in
extras like maintenance, HOA fees and so on.
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Wednesdays | 3 p.m. ET#CreditChat
”Richmond American@RAHomes
The rule of thumb is that no more than 36% of your gross income should go toward your total loan payment.
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Wednesdays | 3 p.m. ET#CreditChat
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Kristy Welsh@WelshKristy
Wednesdays | 3 p.m. ET#CreditChat
What unexpected costs might you encounter when buying a home?
Depending on what you’ve planned for... insurance, maintenance, property tax
and utility price increases.
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Wednesdays | 3 p.m. ET#CreditChat
”Money Crashers@MoneyCrashers
Another excellent reason to avoid straining your finances when buying a home. There’s always an unexpected
cost.
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Wednesdays | 3 p.m. ET#CreditChat
”Leslie H. Tayne, Esq@LeslieHTayneEsq
Be prepared for closing costs, inspections and home
improvements.
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Wednesdays | 3 p.m. ET
South State Bank@SouthStateBank #CreditChat
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You might uncover some things that need repair. Before you know it, you’re redoing a kitchen and bathroom.
Expensive!
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Wednesdays | 3 p.m. ET#CreditChat
”Douglas A. Boneparth@dougboneparth
Location too. If you buy a house that’s a little farther than where you work, the cost of commuting will increase.
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Wednesdays | 3 p.m. ET
Piggie Banker@PiggieBanker #CreditChat
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It’s all about lifestyle. Before you decide to buy, figure out what sort of lifestyle you plan
on having. And don’t view your primary residence as a financial investment. It’s an
emotional investment.
#CreditChat
Source: @MMarquit
Start budgeting like you have the mortgage, which will probably be higher than whatever
you’re paying now for housing. Use the savings toward a downpayment. By budgeting
this way, you really start to feel whether or not you can afford the house you think you
can afford.
#CreditChat
Source: @Wangarific
Don’t get lured into what the bank tells you you “can” afford. Make sure you understand
your budget needs and what you truly can afford.
#CreditChat
Source: @DebtRoundup
Be sure to set aside 20-30% of your monthly payment for maintenance. Most new
homeowners have no idea how much it costs to maintain a house. Heck, I’ve been home-
owning for over 20 years and I still get surprised.
#CreditChat
Source: @RealKateHorrel
When you’re looking for a home, remember human psychology. We often decide based on emotions, then try to back it up with logic. Don’t fight it. Look until you find
the house you love. Then find reasons why you “shouldn’t” buy it. Don’t look at a house based on stats and try to
convince yourself that you love it when you don’t initially.
#CreditChat
Source: @Wangarific
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