National Homeownership Month – We answer your homeownership FAQs!
Happy National Homeownership Month! Owning a home can cause you to be filled with questions you had never even thought to ask before. Don’t worry, we’ve got you covered! We’ve answered a few burning homeownership questions below:
1. What’s better about buying than renting?
A home is an investment. When you make your monthly mortgage payments, the money is going toward something that can serve you and your family for years. While renting is a great option for many, especially for small periods of time, when you rent, your money doesn’t go toward an investment into your future. The money you use for rent payments is gone forever just as other everyday transactions.
2. I’ve always heard you need 20% for a downpayment, is that true?
While 20% down has been the tried and true recommendation, it’s actually not needed, and not always the best option. You shouldn’t have to save for years and years before you can even think about making that down payment. There are many loan programs specifically for first-time homebuyers, and even some through the government, that allow you to put down as little as 5% or less.
3. How does my credit affect buying a home?
The better your credit score, the lower the interest rate your lender will give you. While a low credit score doesn’t prevent you from buying a home, it could require you to make higher payments than you had originally expected.
4. Should I use a real estate agent?
Using a real estate agent is a great idea. Not only does a Realtor help you with the whole process, but he or she can assist you in the most important step — price negotiation.
5. What other costs, other than mortgage payments, should I think about?
Unfortunately your mortgage won’t be the only charge you’ll have to worry about when it comes to the homebuying process. There are several extra costs that come along with being a first-time homebuyer, such as moving costs, repair costs and closing costs.
With all the unfamiliarity homebuying can bring, we know we didn’t cover every single one of your FAQs. That’s why United Housing offers homebuyer education courses and other resources that will give you the knowledge and tools you need to embark on the journey of buying your first home. Contact us today to find out more.
However — if you have a burning question you need answered ASAP, comment below and we’ll help!
