Is it the right time to think about buying a new home and settle peacefully? Are you financially sound enough to afford a residential place as expected? What about the technical factors involved in property investment? As a first time home buyer, several complicated questions keep on running in the mind and we can’t find a credible knowledge source. If you are also going through the same situation right now, let us help. We will educate you with the basic and crucial information regarding residential property investment.
Perks for the first-time homebuyers
The government is funding several programs to support first time home buyers. If you are following all the legal processes, the following perks will be available to enjoy:-
- On the basis of the credit reports, you will become eligible for low-interest loans. These loans are backed by government funding.
- On the basis of locations, different states have different tax exemption rules for first-time homebuyers.
- Lowest possible down payment programs.
- Opportunity to withdraw IRA funds without penalty issues.
- Down payments securing and sourcing with flexible guidelines.
That looks motivating to invest in residential property but you also have to beware of its qualification criteria. Below is a list of requirements that qualify a person for the first time home buyer process.
Eligibility criteria to avail first time home buyer advantages
- People who didn’t own a principal residence (3 years time period).
- An individual owner can become the first time home buyer if he/she buys a new home with a spouse.
- Homeowner, who has a home without a permanently affixed foundation.
- Single parent whose previous residential property was owned along with the former spouse.
- If the already owned property is not complying with the state regulations.
Some considerable questions before deciding to buy a home
While introspecting your financial health, it is advisable to keep some important factors in mind as mentioned below:-
- Calculate all the savings including your PF, saving accounts, fixed deposits and invested money in other finance activities. Also, review your expenses on a monthly and annual basis. The third important thing to keep in mind is your credit score. With a higher credit score, you will manage to get a loan at the lowest possible interest rates.
- While selecting the type of home, think practically. Your dream home should have a feasible infrastructure that meets all necessary requirements. Make sure that the features you are looking for are actually worthy and also not shaking your pre-decided budget unnecessarily.
- Apply for a loan only after checking your mortgage affordability. There are online calculators capable of providing feasible data according to your income and spendings. Home affordability calculators ask for some details such as your annual earnings, expenses, down payment, interest rates, insurance and property tax.
If necessary, hire a certified loan advisor, offering mortgage consultation services. They will also help in meeting all the legal complications.