First-Time Home Buyers
Get Answers to Your Questions About Buying in Port Liberte
Learn about all of the home options that are available to first-time home buyers and be the first to see new listings in the Port Liberte area. For more questions, reach out to our team of local and experienced real estate agents today!
Understanding Your Mortgage
Buying a home can be filled with lots of complicated terminology, and we are here to help you understand all the lingo. The first thing to have an understanding of is your mortgage. Learn about the various types that can aid you in purchasing your first home.
Types of Mortgages
There are a multitude of mortgages out there that buyers can choose from. Learn about the four basic types of mortgages that are commonly used.
This is a standard loan usually chosen by buyers with good to excellent credit who are able to make a down payment of at least 10%. There are programs that do offer options for a lower down payment based off of a variety of reasons.
This loan is great for buyer with lower credit scores and offers buyers the option to make a down payment as low as 3.5% with lower interest rates.
This type of loan is available to all veterans and active military members. They include lower interest rates, up to 100% financing assistance, and a simplified loan approval process.
First-Time Homebuyer Mortgage Program
The New Jersey Housing and Mortgage Finance Agency’s (NJHMFA) First-Time Homebuyer Mortgage Program is an opportunity for potential first time homeowners in the state. For those who qualify and utilize a participating lender of the program may be eligible to receive a 30-year, fixed-rate government-insured loan. Ask your potential lender if they are a participating partner!
What Do Mortgages Include?
Mortgages have four major elements that they are composed of. It is commonly written as “PITI”.
This is the repayment of the initial amount that you borrowed from your lender—in other words, the costs of buying your home.
This is a payment that is made to the lender for the amount of money you borrowed. This is then added to the initial price of the home.
Taxes that must be paid to the city and county are assessed based on the property and then divided by the number of mortgage payments you will make in a year and added into your mortgage.
Homeowners insurance will cover you against various hazards and will be added into your monthly mortgage payment.
Evaluating Various Loans and Trying to Determine the Best Option for You
One of the most important steps when shopping for a new home is beginning with a fair amount of research to determine what will work best for you. This can include meeting with at least two different lenders and deciding which one can give you the best rate. Another element to consider when choosing a loan is the interest rates that are offered by various lenders.
This mortgage type is a great option for those looking to have a predictable amount to pay each month on the mortgage. The interest will not change allowing homeowners to be able to budget appropriately as they move forward in their financial portfolio.
In comparison, the interest rate for an adjustable-rate mortgage tends to lower in the beginning, but the interest rates will actually fluctuate with the market. This makes them unpredictable and can result in higher payments.
Consider Your Monthly Budget
Once you have done your research into the various loan options that are available for you, the down payment you expect to put down and what you are looking at paying for an interest rate now you should forecast what a monthly budget may be. Completing this step will enable you to determine how much you can afford each month which in turn can help you calculate a price range in which you should search for homes.
Something to consider is that mortgage costs will be based on both the actual price of the home and the current market interest rates. A home could be in your price range one day and then not be the following day based on the current interest rates.
Find a Trusted and Experienced Real Estate Agent in Port Liberte
While having a Realtor is not a requirement, it definitely makes the home buying process easier. If you choose not to utilize a Realtor’s expertise, we highly recommend using a lawyer or being a highly experienced buyer. The person you choose should be someone who you know is an expert in the area, and is someone you can trust who has experience working with homebuyers with your experience.
Search for Homes for Sale in Port Liberte
Here is where all of the hours of watching HGTV and the DIY Network pays off! You get to start the search for your new home. During this step, be sure to carefully consider what you need (and want) in a home. Determine what type of home you are looking for and the interior and exterior amenities that you need to have to properly function in your new space. While searching for homes, keep a record of the things that you like and don’t like about the properties that you tour.
Make an Offer
Have you found the perfect home but aren’t sure how to proceed from here? Now is the time when you sit down and talk with your trusted real estate expert on what to offer the seller in order to be considered. By chatting with an expert, they are able to steer you in the right direction of something that you can afford but will not be immediately rejected by the seller.
What Can I Expect to Pay Upfront?
Consider this to be your security deposit. This is expected when you submit the offer to the seller to show how serious you are about the offer. If they choose to accept your offer, it is then applied to the down payment or the closing costs.
This amount is usually set by the loan you agreed to when you selected your loan. This can also be determined by any government programs you choose to use for assistance in purchasing your home.
These tend to be lower for buyers and usually just are the fees that come with the paperwork and lender charges.
Request a Home Inspection
Should the seller choose to accept your offer, the next step is to get a home inspection. Before you sign on the dotted line you will want to ensure you are getting your money’s worth and have an experienced professional walk through the home to ensure there are no lingering problems. There may be maintenance issues that are not seen at first glance that you will not want to deal as a brand new homeowner. Should there be any serious problems, you can request the seller resolve any issues prior to closing.
The fun continues! Once the home passes inspection (and we recommend getting a brand-new home inspected as well), now is when you sign on the dotted line. After all negotiations have been settled and all payments have been made, you finally will get your new keys!
Review Your Contract
This is another good time to consult with your trusted real estate expert—whether that be an agent or a lawyer to make sure that you are covered should something fall through with your mortgage. For more questions about this, reach out to our team today!
Finalize Your Mortgage
Once you have chosen a lender that will work for you and your financial situation, work carefully with them to submit the mortgage application and have your home appraised. They can also review predicted closing costs that you may not think of. Costs such as attorney fees, title insurance, appraisal fees, home inspection fees, courier fees, government recording fees, and taxes. By discussing these with your lender, you will have a better idea of what payments you should be prepared for.
Prepare to Move
Now that you are about to move into your new place, now is a good time to ensure that you are prepared to leave your current residence. Make sure that all utilities and important offices (such as doctors and dentists offices) know that you will have a new address to send letters to.
Congratulations! You have just bought your first home!
Closing Day has arrived which means you are so close to getting your new keys. On this date, you can expect to meet with the agent, lender, and the seller to finalize any remaining paperwork, sign the contract, and pay your down payment and closing costs. Finally, take the keys to your new home and celebrate!
Have Any Additional Questions About Buying Your First Home in Port Liberte?
Still have remaining questions about what buying a home for the first time will look like? That’s all right, we have the answers! As the local area experts in Port Liberte with over two decades of experience, we are ready to assist you in finding the home of your dreams. Reach out to us today to get started in buying your first home.
Port Liberte Home Buying Resources