First Time Home Buyer Tips

First Time Home Buyer Tips For Our Local Long Islanders.

Buying a home on Long Island can be one of the most rewarding things, but also nerve-wracking at the same, especially if it is your first time. This is because it is very hard to know what to expect. The good thing is that you can get to learn a lot about the process and avoid some mistake many first-time homebuyers make. Investing a little time and effort in learning more will go a long way in helping you during the process. You will be feeling a little more confident because you will know what needs to be done and what to avoid. Here are some tips for first time home buyers.

Start saving for the down payment early

It is usually common to put about 20% down, but there are some lenders who offer less and also have programs for first-time homebuyers for as little as 3%. The downside of going for less than 20% down payment is the fact that you will be hit with higher costs and also have to pay for private mortgage insurance, and the down payment can also be hefty. An example is paying $10,000 for 5% down payment for a $200,000 home. If you want to save on down payment, consider setting aside tax refunds and work bonuses, and also set up an automatic saving plan while tracking your progress.

Check your credit

One of the biggest factors considered when approving your mortgage loan will be your credit. It will also determine your interest rates and the terms of the loan. This makes it a good idea to check your credit before you can begin the process of buying a home. Go and dispute any problems that might be negatively affecting your credit score, and look for ways to improve your credit, example making a dent in any outstanding debts you might be having.

Pause any new credit activity

When you open a new credit account, whether it to get a new credit card or auto loan, the lender will run an inquiry, and this can have a temporary effect on your credit score. If you plan to apply for a mortgage soon, then you should avoid doing this until you are done with the process.

Determine the amount you can afford to spend on your Long Island home

Before you can start shopping around for your Long Island dream home, you need to sit down and come up with the actual price range you are going to work with. You should choose an amount that you can safely afford to spend.

Budget for closing costs

Many people do consider the closing costs because they are fully focused on down payment. The closing costs can be about 2% to 5% of the loan amount. You can shop around and compare the closing expenses such as home inspection, homeowner insurance, and title searches. You can lower the amount you are going to pay by asking the seller to pay part of the closing costs and also negotiate the commission of the agent.

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First Time Home Buyer Tips For Our Local Long Islanders.
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First Time Home Buyer Tips For Our Local Long Islanders.
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Buying a home on Long Island can be one of the most rewarding things, but also nerve-wracking at the same, especially if it is your first time. This is because it is very hard to know what to expect. The good thing is that you can get to learn a lot about the process and avoid some mistake many first-time homebuyers make. Investing a little time and effort in learning more will go a long way in helping you during the process. You will be feeling a little more confident because you will know what needs to be done and what to avoid. Here are some tips for first time home buyers.
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Abstract Home Solutions
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