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What First-Time Homebuyers in University Hills Need to Know About Real Estate

August 22, 2018

If you are a first-time homebuyer, you don’t need anyone to tell you that this is a big decision. Buying a home is probably the biggest financial investment you’ll ever make. You are likely very excited about buying University Hills real estate, and you probably have many questions about. Here are some of the most common questions first-time homebuyers usually have.

Why Buy Instead of Rent?

There is no doubt that renting is “easier,” but you don’t get the perks of homeownership as a renter. Some of these include:
  • A portion of your monthly mortgage payment goes toward reducing how much you owe on the home, so your money is actually working for you instead of a landlord.
  • Your mortgage interest and property taxes are tax deductible, so this will help reduce how much you owe to the IRS each year.
  • You can build equity as the value of your house goes up over the years.

Is Now a Good Time to Purchase a Home?

Now is a great time to buy a home because interest rates are still low. Of course, you need to assess your own financial situation to determine whether or not it is a good time for you to buy. You also need to have enough money saved for a down payment, and you’ll need to have a decent credit score.
How Much Will I Need for a Down Payment?
This will depend on a number of different factors, but it usually is about 1 to 3 percent of the price you are offering for the home. In general, you have to have enough money up front to cover the earnest money that accompanies your offer to purchase, the down payment, and the closing costs of the transaction.

How Much House Can I Afford?

Here’s a calculator you can use to help determine how much home you can afford. This is a good way to figure out if now is a good time for you to buy. If the average price of homes in the area are more than you can afford, you’ll need to continue saving up for a down payment.

What Is the Closing All About?

The home closing is the meeting you’ll have—usually at a bank or title company—where all the fees, costs, and paperwork is finalized. Be sure to ask questions if there is something you don’t understand. There will be a stack of documents for you and the home seller to sign, and the mortgage and deed will be recorded with the county. You’ll get a copy of all the documents as well as the keys to the home.
If you are a first-time homebuyer who is on the fence about buying real estate in University Hills, the professionals at Elevation Realty can help. We can tell you more about the University Hills real estate market and whether now is a good time for you to buy based on your current financial situation as well as on current interest rates. Contact the Elevation Realty team when you are ready to buy and want to find your dream home or give us a call at 303-579-3566 to begin your search.