Home Buying Tips and First Time Home Buyer Programs
It is normal for first time home buyers to feel intimidated by the housing market, and a bit fearful that they will make the wrong decisions. It is also understandable that first time home buyers feel like they are going to have to pay more for a home because they have never owned property before. In reality this cohort tend to get the best mortgage loans thanks to the many first time home buyer programs that exist. Diditan Financial is a home loan company for first time buyers that staffs an entire team of experts who work specifically with these borrowers–they are passionate about helping them save as much money as possible, and we pride ourselves on providing help for first time home buyers by educating them so they can make informed decisions on the best mortgages available. Are you shopping for a home? Before you call Diditan Financial, here are some of the most common questions we get from our clients:
Should I Buy a House or Rent?
It is better to own your own home rather than rent for many reasons. First, a home is an investment, and rather than pay rent on something that isn’t yours you can make a monthly payment that builds equity in a home you own. Most buyers can find a mortgage that offers monthly payments comparable to a monthly rent check by searching the various first time home buyer programs. in some cases, you can even pay less. For example, if you buy a house and are able to deduct the loan interest from your state and Federal income taxes–an amount of money that winds up covering a big chunk of your monthly payments, you will be paying less.
Also, you are making an investment. Buying a home is not like buying a car–it won’t depreciate. Instead it will increase in value over the years. For example, according to Zillow home values in Los Angeles went up by 7.4% just in the last year, and they predict prices will go up by another 2 percent by next year. When you buy a home so long as you take care of it, its value will only shoot up.
When you rent there isn’t a whole lot you can do to change the interior look of the living space. When you own the property you can customize it to fit your style no matter what. The only stipulation may be the color you can paint the home’s exterior facade. Check with your HOA to see if they have color restrictions for painting the outside of the home. There is a reason why your HOA may have these restrictions: Imagine if someone painted a bright pink home with fluorescent yellow shutters, a bright green door, and checkered trim. Would you want to live across the street from that? All it takes is someone’s bad sense of style to lower property values of the surrounding homes. Therefore your HOA likely has a list of approved paint colors you must choose from.
Are there First Time Home Buyer Programs for Single Parents?
Absolutely! First time home buyer programs for single parents are out there, and when you team up with Diditan Financial we will find multiple options to best suit your needs. Your biggest challenge will be not having the advantage of two incomes to help you qualify for a mortgage loan. it is wise to get pre-qualified before you go house-hunting, because then when you find something you love, you can act fast and scoop it up. To find the best first time home buyer programs for single moms or dads, contact Diditan Financial and ask to speak to one of our HUD-funded branches so that you can learn of the many possibilities that are out there. HUD homes often present great deals. You can also go to your state’s government website to see if there are any first time home buyer programs that might help you get a lower rate.
Can I Buy a Home With Bad Credit and a Small Down Payment?
There are several Federal mortgage programs that any HUD-funded counseling groups can help you find, and you can always call Diditan Financial to get a direct level of assistance, in addition to our continuous effort to help you get the home of your dreams at an affordable price. You can even “get all Nancy Drew” and do some detective work by calling your Mayor’s office to inquire about special county programs.
What Kind of Costs do You Pay When You Buy a Home?
Aside from the mortgage payment, other expenses you face when buying a home include property taxes and home owner’s insurance. If you have had your utility bills covered in your previous rental, paying them for your home may seem overwhelming at first. When you buy your house ask the previous owners what their average utility bills are so that you can get a good idea and work the costs into your budget. You will also likely pay some city or county taxes.
How to Make an Offer on a House
Your realtor will help you with this portion of the buying process. No matter what first time home buyer program you buy your house through, and no matter how good the deal is, you always want to try to get an even better one by negotiating on the sale cost of the home. Check the comparisons in the neighborhood and on the same street. See how much similar home recently sold for. Then consider the condition of those homes and the one you want to put an offer on. If the seller is offering a home for $450,000 that needs a new roof, has signs of water damage on the ceiling, and the kitchen needs a complete gut and remodel yet a similar home that was fully renovated sold a few days ago for $458,900, you will want to ask for a healthy reduction in price. Get a home inspection and a list of the repairs that need to be done. It is wise to get three quotes and use the average cost as leverage. Also, consider how long the home has been on the market. if it has been sitting for a few months, you can likely get a decent reduction. In the event the home is priced bellow market value, and you absolutely love it, and you know other parties are interested, talk to your realtor and discuss an offer above asking price.
Buying a Haunted House to Save a Buck? Please Think of the Children.
I know Daddy paid 70K below asking price, but I wish I didn’t have to see skeletons dressed in Civil War uniforms every time I brush my teeth!
Buying a Haunted House
Well, either you like the idea of buying a haunted house, or you don’t. If you want any peace of mind that the home you are buying is not haunted you can ask your realtor to have the buyer include a statement in the disclosure saying whether or not occupants have witnessed any paranormal activity. If you wouldn’t mind living in a haunted house, you might even use it to your advantage. In the event your credit has too many holes in it to qualify for some of the better first time buyer programs, you could supplement your income to cover higher mortgage payments by giving guided tours of your home. Realtor.com published an article on known haunted homes for sale in 2015, one being a 1927 Frank Lloyd Wright home in Los Angeles priced at $4.79 million. Many believe it was where Elizabeth Short aka the “Black Dahlia” was killed in 1947. If you are a clever marketer, and often say to yourself, “I ain’t afraid of no ghost”, you could get a good deal on a home that scares other prospective buyers away and market the place as a must-see tourist destination.