Buying a house may seem like a challenge, but there are ways to grow your wealth without affecting your financial life, such as mortgage options through institutions such as Rocket Mortgage or benefits from the federal government. Do you want to know everything should you keep in mind when buying your first home? Continue reading!
Benefits for first-time buyers
First-time buyers are faced with several questions, but perhaps the first one is “How can I get a mortgage loan and how much do I have to put down?” For this, you can consider the options offered by financial institutions such as Rocket Mortgage, which makes it possible for you to buy a house even when you do not have the cash for a huge down payment.
This specialized mortgage lender also provides loan options without penalties or interest, enough to cover the entire advance, as long as you stay in the same house for a period of more than five years. Otherwise, you will need to pay some of the interest. Learn more here!
Whose name will be on the title?
Remember that a house can be one of your best investments but, like any financial decision, it requires some research to make a decision that benefits your interests. This includes defining the legal details involved in buying a new home. For example, whose name will be on the title? You have several options for this, such as sole ownership, shared tenancy, or co-tenancy.
The first option is particularly favorable when your credit score is considered “good”. As for shared tenancy, the two people will have equal legal possession of the property, while in the last option, one person could own a smaller percentage of the property, depending on their credit history.
Location is one of the factors that will have the greatest influence on the return on investment of your new home. For this reason, it is essential to know what kind of development is going on in the long- and short-term in the area you are considering. It’s also important to research the safety and schools in the area.
All of this could indicate how much your property may appreciate in the future. Visit the neighborhoods, talk to people who live in the area and consult with real estate agents about the plans for commercial or residential expansion in the surrounding area to determine if it is a good long-term investment.
Amenities and services near the house
If you are looking for a house where your children can grow up, it is also important to consider the added benefits of the mortgage you’ll be paying. For example, the amenities and recreational areas near your new home, as well as the hospitals, schools and other services that will be necessary for you.
Check with your real estate agent to find out what your options are based on your budget and financing plans. You might be surprised at how much your money can yield compared to paying rent indefinitely.
Number of rooms
The floor plan of the house you will buy should align with your plans for immediate and future family members. If you’re still thinking about having children, consider how a house layout works best for you, depending on your preferences — from open floor plans to two-story houses with multiple rooms.
The number of bedrooms or the possibility of refinancing for the construction of new areas will also be a factor that will help you decide on a property, since you will be able to draw up long-term plans according to family needs.
Financial institutions typically offer 30-year mortgages, but companies like Rocket Mortgage have fixed term 15-year plans and, although the monthly payments are usually higher, the interest rate is lower, which helps you save thousands of dollars in the long term, that you can invest in other areas of your home.
Before making a decision regarding the term of your mortgage, consider your current financial situation and the way in which the purchase of your house will adjust to your economic dynamics from now on. Thus, you will be able to make a successful investment that does not represent a burden for you.