Affordable Housing | Bogalusa Rebirth

WHEN BUYING A HOUSE FOR THE FIRST TIME

Taking the leap into homeownership is a big decision — one of the most important and costly decisions that you may make over your lifetime, and one that requires careful consideration of the pros and cons. If you’re buying a house for the first time, it’s hard to know where the potential pitfalls might be. Don’t worry, we at HomeOwnership OC have got you covered! Here are 10 first-time homebuyer frequently asked questions to ask yourself before you make an offer on a property.

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How Much Can I Afford?

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This is one of the first questions to ask yourself when buying a house for the first time. To identify your budget for a house, start by talking to a HUD Housing Counselor and taking a hard look at your personal finances, including your income, monthly expenses, and debt. To determine your current monthly expenditures, review your spending and add up your regular monthly expenses like your phone bill, food, transportation, utilities and dependent care. It’s important to include insurance premiums (on auto, medical, life and any other policies you may have) when budgeting for buying a house for the first time. Our Housing Counselor can provide you with budgeting tips to help you put this data together, and can also help you review your income, credit, savings and down payment programs available in your area to help you determine the mortgage you may qualify for. Keep in mind, owning a home often brings added monthly expenses — both expected and unexpected. Its recommended to attend one of HOmeOwnershipOC’s First Time Buyer Workshops to educate on the home buying process.

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What Are Closing Costs?

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Closing costs are paid at the close of your real estate transaction and may include your home inspection, realtor and lawyer fees, title search, pest inspection, appraisal, home warranty and loan origination. The costs to close can add up quickly, so it’s important to make sure you have the funds to cover them. Your lender may also require you to set up an escrow account to pay for ongoing property expenses. Your housing counselor can help you figure out what you may need for closing costs depending on your purchase price.

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Do I Have Money for a Down Payment?

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Your down payment affects how much money you’ll need to borrow. A larger down payment means a lower monthly mortgage payment. HomeOwnership OC’s housing counselor can help you apply for down payment programs and first time buyer loans which have low down payment and flexible ratios for first time buyers.

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What Are the Hidden Costs of Owning a Home?

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When you rent a home, your landlord covers maintenance and repairs. But as a homeowner, you will be responsible for repairs and ongoing maintenance, like taking care of your yard and servicing your appliances. Depending on the home you buy, you may need to buy household items like a snow blower, lawnmower, sprinkler system and other tools. If your new home is part of a homeowners association (HOA), you may need to pay a monthly fee to your HOA. Ask your realtor if there are HOA fees tied to the property you want to buy and, if so, what expenses and services your HOA covers.

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How Much Will Property Taxes Cost?

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First-time homebuyers are often shocked at the cost of property taxes. Before purchasing a home for the first time, find out what the estimated taxes will be on the property. You can do research ahead of time so you aren’t surprised by rate increases. This is also a great question to ask your realtor when buying a house for the first time because their experience will give them a better idea of what you might expect.

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What Are My Rights as a Borrower?

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It’s important to know your rights as a mortgage borrower, which makes this an important first-time homebuyer question to explore. The Consumer Financial Protection Bureau’s Know Before You Owe initiative provides borrowers with a better understanding of loan options, helps them shop for the best mortgage and aims to minimize the chances of any surprises before closing. Your housing counselor can also answer questions regarding your rights as a mortgage borrower so feel free to outreach to HomeOwnershipOC for individual counseling and education.

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