Buying Basics for First Time Home Buyers

Buying a house can be stressful, but it does not have to be. When equipped with the right information so that you can make an educated decision about your next house, the process can rather be thrilling. In the first part of our First Time Home Buyer Guide, we will be discussing the basic steps that you would need to take when buying your first house. Before buying your new house, you would need to consider the state of your finances. To find out if you are financially capable, you should first calculate your monthly income and find out how much money you can afford to put towards a new house. Most financial advisors suggest your monthly housing payment be around 25% of your monthly income. To add on to your housing payments, you would also need to consider your homeowner’s insurance, property taxes, closing day costs, and possible HOA fees. Once you have figured out your budget, you will most likely be using a mortgage. A mortgage is a form of financing a property with a set number of payments over a set period of time. Below are informational links about the different types of mortgages: Mortgage Series: Conventional Loans 101 Mortgage Series: FHA Loans 101 Although the internet is great for finding information, when finding a new house, it is best to talk to a realtor about all of the possible houses on the market. A professional can make this process easier by filtering your personal preferences, such as distance from work or school, types of neighborhoods, price range, location, etc., and find you a larger pool of listings in a way that the internet simply cannot. Even though this might seem overwhelming, the LORE Team in Orlando can help support you during this new and exciting time. Our professionals have over 50 years of experience and extensive knowledge on real estate, and they would be more than happy to assist you on search for a new house.