Published on 04-17-2018
This spring, we will be sharing a blog series highlighting the top four concerns first-time home buyers tend to have and how you can feel comfortable about them. We’re here to help you through every step of the homebuying process.
Your first home is most likely one of the biggest purchases (if not the biggest purchase) you will make in your entire life. It’s where you and your family will live for many years – or perhaps forever. It’s likely your first real investment.
When you embark on the journey of becoming a home buyer, it’s important to keep your concerns in mind when going through the process. Though, we will help you navigate those concerns so that worry and fear doesn’t overwhelm you.
Whether you just moved to a new area, got a new job, had a baby, got married, or maybe you’re just tired of renting – there are many reasons why you might be deciding to purchase your first home.
If you haven’t owned a home yet, that means you are likely accustomed to renting or leasing. Renting is obviously much different than owning – especially when it comes to taking care of maintenance issues.
According to Investopedia, failing to consider and budget for additional expenses is one of the most common mistakes made by first-time homebuyers. This includes planned and unexpected home maintenance and repairs.
However, you can plan ahead for maintenance and repairs even if they are unexpected or emergency situations. Experts at CNN Money advise on saving up for at least three to six months before you become a first-time homebuyer to create a buffer for your account. That way, when something needs to be fixed, you aren’t stuck in a financial bind.
And, did you know that Coastal can help keep more money in your pocket for maintenance issues? Your first-time home buyer mortgage with Coastal may not require a down payment and Private Mortgage Insurance (PMI) isn't required, saving you hundreds of dollars per year.
Another way to save up for maintenance issues is to think critically about the things you want for your new home vs. the things that you actually need.
For example: fixing the kitchen sink is far more important than updating the backsplash in your kitchen. Make sure you are taking care of everything that needs to be fixed first before opting to update your home’s aesthetics, while also keeping plenty of money in savings for other issues that could come up. Once you have enough in savings, you can consider getting some of the things you want for your new home.
When buying your first house, you could feel stressed about the financial commitment or the ability to afford your monthly mortgage payments. Just know that it’s completely normal to feel a little nervous about such a large purchase and with the right amount of preparation, you’ll be in great shape.
If you’re worried about being able to afford monthly mortgage payments, be sure to check out Coastal’s home affordability calculator as a good starting point. Like me, you might be surprised to find that your monthly mortgage payment could actually be much lower than what you’ve ever paid for rent.
In conclusion, don’t let fear hold you back from purchasing your first home. Coastal’s team of experts are here to guide you through the entire process from start to finish. It’s just one more way we offer our members a better way to bank. To get started, you can make an appointment to meet with one of the mortgage specialists near you, or, go ahead and apply for a mortgage online.
All loans are subject to approval.
For a $250,000 loan for a term of 30 years with a 4.50% APR, the monthly payment is $1,267.00. Taxes and insurance are not included in this payment example and that the actual payment obligation could be greater. All loans are subject to approval.
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