How to Plan for Buying Your First Home

If you’re new to the housing market, it can be hard to navigate all of the potential buying options you have. Maybe you know what kind of house you want, but you don’t know if you need a warranty on it. You think you’d like to have a new house, but don’t know the pros and cons associated with buying a previously owned house. Or maybe you don’t have the complete finances you need and you’re trying to look into getting a mortgage. All of those are plausible reasons to be unsure of yourself in this new market, but don’t worry. With a good plan in place, you’ll have that dream house in no time.

 

New or Previously Owned

 

One of the first things you’re going to want to determine is whether you want to buy a new home or an older one. This decision will have quite a few pros and cons for you and it can affect how much you have to pay. New homes typically cost more overall, but you won’t have as many problems with appliances and structural damage that take time to show. The older the house that you plan to buy is, the more problems could potentially arise from it, but if you know a good contractor or don’t mind tackling it yourself, it might not be a problem for you. In addition, previously owned houses may have more to offer you. Their styles are more “vintage” and sometimes you might get some furniture included as part of the deal. However, you do have to keep a few other expenses in mind before deciding completely.

 

Warranty

 

If you’re thinking about buying a previously owned home, then you should consider adding on a home warranty as well. If you aren’t familiar with a home warranty, it’s designed to help you pay for some of those problems you could encounter, including repair costs to major appliances, and multiple contracting visits. They are not the same thing as home insurance, which covers the cost of things if they get stolen or lost in a natural disaster. Warranties aren’t as needed when it comes to newer homes because there isn’t always a need for them. However, warranties themselves are fairly cheap so they are worth the money if you’re willing to make the investment, but they aren’t an all-encompassing payment option. They usually only pay for some of the costs you’ll have to face, but you can use the money you saved from not buying a new home to help cover the rest. And it’s not like older homes are always falling apart, home warranties are just there to protect you in the event of an accident like that.

 

Mortgage

 

Mortgages are another important part of buying a home. Like warranties, you don’t always need them but they can be good to help you out when you’re in a tight spot financially. A mortgage is a loan that home buyers use to finance their buying of a house. It can be tricky to know if you can really afford a mortgage since there are a lot of variables involved in the process, but a mortgage calculator can give you a pretty good idea. There are different kinds of mortgages, including fixed rate, adjustable rate, or balloon. Fixed rate mortgages are the most common and most popular of these options, because they don’t change throughout their terms. Adjustable rate mortgages stay fixed for a certain amount of time and then change, while balloon mortgages allow you to pay less monthly because you’re expected to pay a larger payment at the end of the loan. If you’re buying a house for the first time and you need a mortgage, then a fixed mortgage is probably the way to go. However, it could be beneficial to know about the others just in case.

 

It can be overwhelming to try to figure out the housing market, but if you have an idea what you’re looking for and what you have to pay, it can be a little more manageable. And that will make it just a little easier to find the right house for you.

 

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