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Helpful Tips for First-Time Homebuyers

By Mike in Buying Tips with 0 Comments

If you’re like most people, buying a home is the biggest purchase you will ever make. While buying your first place can be an exciting time, it’s easy to make mistakes that come back to bite you later. Here are some tips to keep in mind that will help you find the right place at the right cost.

Save up for Your Down Payment

While you can get a mortgage with a down payment as low as 3 to 5 percent, it’s in your best interest to put down at least 20 percent. By putting down at least 20 percent on a traditional loan, you can avoid private mortgage insurance (PMI), saving you $100 to $200 per month. If you don’t have as much saved up as you would like, look into down payment assistance programs offered by nonprofit organizations and lenders. Some lenders offer programs for first-time buyers who have a down payment as little as 3 percent to help them avoid PMI.

Consider All Costs of Homeownership

Buying a condo or loft for sale in Downtown San Diego is very different than renting. As a homeowner, you will be responsible for insurance, improvement costs, maintenance costs, property taxes, HOA fees, utilities, and other expenses. Don’t forget to factor these costs into your budget.

Put the Loan First

Shopping for your new place can be, without a doubt, fun, but it’s important to secure financing first. Get preapproved for a loan before you even look at Downtown San Diego condos for sale to help you make a financial, not emotional decision. Remember that the amount for which you are approved is not necessarily what you will be comfortable paying every month. Consider all costs of ownership, shop around for a loan with the best rate, and decide what you can afford to pay each month before you start your search.

Ready to kick your search into high gear? Work with an experienced Downtown San Diego real estate agent who specializes in the area’s unique neighborhoods. We can show you condos, lofts, and penthouses within you budget that also meet your every need. Reach out today by calling (619) 649-0368 and schedule an appointment today. ')}