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Warning Signs First Time Home Buyers Should Indentify

Author: Michael Brown
by Michael Brown
Posted: Aug 27, 2015

Buying your own home is certainly one of the biggest decisions of a lifetime. Everyone wants a home to call their own. Like many other people, you may even be aspiring to invest your lifetime earnings and savings into a house of your own.

The thrill and excitement associated with house hunting is nearly palpable, especially if you are a first time home buyer. However, before this thrill turns into disappointment, it is important to ask yourself if you are ready to buy a house. It is important to enroll in a first time home buyer program in Sharon, if you are new to the home buying game.

Here are a few warning signs to look out for, before you make an important investment in a home.

Things to consider:

  • Will your payments be consistent? When you are buying a house, you are talking about a long term mortgage. This mortgage usually ranges from 15-30 years. If you have a secure job that can fulfill your mortgage payment commitments for the next few years, then you are ion the right path. If you are doing odd jobs in a company to earn a living, it may be time to take a second look at that house to make sure you can make mortgage payments. Make sure you can pay the mortgage payments on time before going on a house hunt!
  • Transient or Permanent?Buying a home means residing in that area for a significant number of years. If you are unsure about the area, it is advisable to consider rentals instead of purchasing a home. Closing costs, like commissions, interest charges, inspection fees and the like will eat into your budget. This is not the same for rental property.
  • Are you submerged in debt?Many mortgage lenders mostly fail to acknowledge the application for people submerged in debt who are in the first time home buyer program in Sharon.In this situation, a large part of your income is already being used to clear other debts. So, before you go hunting for a house, it is important to ensure that you can reduce the other debts you have and improve your credit.
  • Are you ready for the responsibility?Home own
ership comes with a lot of responsibility. No one else will take the responsibility for fixing a broken faucet or shoveling the snow in the driveway. Homeowners need to be ready for some DIY time; or, they can have these chores completed by others for a fee.

  • Are you prepared for a down payment?Despite having the best mortgage loans available, all first time home buyer program in Sharon come with a down payment. Owners who are unable to make the down payment have to pay for PMI (Private Mortgage Insurance). In order to avoid this additional expense, it is advisable to wait until you have the sufficient amount needed to make a down payment.
  • Are you in a hurry? Most people consider the rental amount as "money washed down the drain." Many people are desperate to buy a house because they are of an age where they think they should have a house. However, this is not reasonable enough to buy a house. Renting seems like the best option, then it is advisable to pursue it.
Therefore, it is necessary to be cautious while you are buying your house. Purchasing a house is a life altering decision. However, first time home buyer programs from reputable banks are there to help you with your important life purchase.
About the Author

There are many MA banks with free checking accounts, but at Dedham Savings you can get the one of the best free checking accounts around. Our account comes with free telephone banking, mobile banking etc.

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Author: Michael Brown

Michael Brown

Member since: Sep 10, 2014
Published articles: 10

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