Everyone has concerns before buying a home- as they should! Buying a home is a massive endeavor and, for 99.9% of people, the biggest purchase of their life.
Newlyweds and first-time homebuyers have to contend with a lot of obstacles, avoid big mistakes, and find the best home they can.
Below are five concerns that many newlyweds consider when buying looking over the available Fernandina Beach homes.
1. How Much Do We Need Upfront?
First-time buyers may be eligible for 0% down or close to it, but these programs are not flawless.
Some still have the buyers select assistant loan option which basically covers the down payment in an interest-free and payment-free forgivable loan. They allocate funds from a HOME Investment Partnership Program. Ask us about specific home buying programs and managing the down payment.
You may want zero percent down or an FHA loan with 3.5 percent down, but always plan to have about 10% in liquid assets ready to go. You want to plan to have some working capital after you buy the home, which can help in renovations, taxes, insurance, and more.
With at least 10% of the total home price of liquid cash on hand, you have more options and can gain a competitive advantage in landing the home you want.
2. What if We Get Rejected?
Fernandina Beach is a hot marketplace.
Rejections are not just possible, but likely. This is why you need to work with an agency that can avoid this disappointment and work around deals where the potential for rejection is high.
Some experts say to look at least 10 homes and fine-tune them to a top three, making offers on the most desirable alternatives if the top offer is rejected.
3. What Has to Be Fixed Right Away?
You may have found a home that fits many needs, but it has some outlandishly gaudy wallpaper. Perhaps there is a major electrical snafu. Don’t hesitate to come up with a list of things that must be fixed within the first 90 days.
This will help you establish a budget early on. But don’t mistake something as a deal breaker when it can be taken care of down the road. Wallpaper or new carpet is an easy fix, so it shouldn’t ruin an otherwise lovely potential home.
4. Is it in the Right Neighborhood?
It is a tough question and one you are certainly not alone in. You need to consider larger neighborhood factors. But you also need to look at the street you live on and narrow things down to the houses directly behind and in front of the home.
Are there zoning laws you need to know? Is the street going to undertake an expansion? Is it family-friendly, with a low driving speed limit? Is there undeveloped land nearby that will develop into a mall to potentially raise the value of the homes nearby?
We can help you look at not just the home, but what is happening immediately around it.
5. Can We Afford It?
This is the ultimate question. Fortunately, there is usually a pretty clear way to determine the answer.
Lenders want to establish your debt-to-income ratio. Housing expenses should not exceed 28% of your gross income.
This is your “wiggle room,” and will determine the basis for whether you can afford the home and whether the lender will approve the mortgage. It will help to determine the total amount a lender is willing to finance.
Consider your location and everything else.
Also, the classic adage “location, location, location” is stunningly true when buying a home. Just about everything can eventually be changed about a home, including furnishings, the roof, the rooms, landscape, and even the foundation itself. What can never be changed is the location.