First Time Buyer Defined
First Time Buyers
A first-time buyer is a label associated with prospective home buyers who have never owned a property before.
First-time buyers are usually attractive to sellers because they have no need to sell a home, and a purchase will not entail a purchasing chain.
First-time buyers will need to look at a number of factors before buying their first property, things like how much of a loan they will have the
ability to obtain, how much in payments they can pay monthly, how much up front cash they will be required to pay for closing costs and earnest money deposit, which type of home mortgage they should look at and how the terms to repay the loan.
In the United States, home ownership is looked upon as a natural occurrence in ones life phrases and the accepted mode of property tenure .
In the 1980s nearly half of all real estate mortgages were originated by first time buyers, although this has now regressed to only around 15%.. Recently the amount of new purchasers for property has declined, as FTBs have been "cash priced from the market" increasingly by cash investors.
First-Time Buyers Five Most Expensive Mistakes
Purchasing your first property can be a overwhelming experience. Here are first-time buyers five most expensive mistakes:
- Making a offer without any type of contingencies. Buyers should ask for weasel clauses just in case an inspection shows up issues or the lender asks for higher interest rates.
- Not paying attention to the extra costs of owning a low FICO score. Borrowers with lower scores end up paying thousands of dollars more in higher rates of interest over the term of the loan.
- Not having money to pay the insurance costs. Insurance can be astonishingly expensive. Buyers should budget for it so they won't face a nasty surprise.
- Not getting a home inspection. Being shocked by the necessity for expensive repairs down the road can mean financial devastation.
- Killing their own sale by buying other things prior to closing. Just about all lenders persist in checking buyer's credit scores clear up until the day for recording. A shopping spree could initiate the lenders rethinking about making the loan.
Mar 29 2011
Buying Real Estate