Homes for Sale: Latest Tips on How to Buy a Home in Today's Market

There are so many aspects to consider when purchasing a home. First up, you need to decide whether to buy or rent. Buying a house is a huge investment, so it's worth crunching the numbers and comparing the costs of renting versus buying. If you're in the market for a new home, then you'll need to find one that meets your needs and budget. It can feel daunting sometimes but don't fret! 

This blog will teach you all about what you should be looking for when buying a home, including tips on where to start your search, how high your down payment should be, and what kind of mortgage works best for you.

Buying or Renting

- Which One is Right for You?

Buying a house is an investment. It's worth spending time thinking about whether you want to buy or rent before you start shopping for homes. Whether you buy or rent will depend on how long you plan on staying in the home, your budget, and your personal preferences.

So you better consider this thing before you buy:

- Is it temporary, or is it your permanent home?

- Do you have enough money saved for a down payment?

- What kind of mortgage do you want?

- Do you need help with closing costs?

- Do you want to do renovations?

Your Budget

The first thing you should do when buying a home is to come up with a budget. This greatly influences the type of house you can buy. 

When calculating your budget, make sure to account for the following:

- The value depends on the size and location of the house.

- How much you can pay upfront.

- See the type of suitable mortgage

- Take into account your monthly expenses

Suppose you're not sure how much house you can realistically afford. In that case, it's worth visiting websites like Zillow or Trulia, which have calculators that will show your mortgage amount based on different variables.

Where to Start

One of the first things to consider when looking for a home is where you want to live. You may not know what neighborhood would be perfect for your lifestyle. Fortunately, nowadays it is easy to find all that information. 

For example, you can use Zillow (http://www.zillow.com), Trulia (https://www.trulia.com), or StreetEasy (https://www.streeteasy.com) to find homes for sale in any location that you're interested in living in. The map on Zillow will show you what's available in your area and even allow you to search by price range, the number of bedrooms or square footage to help narrow down your options!

Difference between a mortgage and an FHA loan

If you want to get a conventional mortgage, you must pay at least 20% of the purchase price. You will also be required to get private mortgage insurance (PMI), which can cost around $100 or more per month. With an FHA loan, borrowers are only required to pay 3.5% of the purchase price upfront in cash to close on their loan. If you cannot come up with enough money for a down payment, there are other ways to finance your FHA home purchase. 

One option is through an FHA streamline refinance, which allows you to refinance your current loan without having to come up with any money out-of-pocket. On top of that, you could qualify for seller concessions, which means the seller will help finance part of your down payment--for example, by giving you a gift or making repairs needed on your home before closing.

The Basics of Home Financing

Your down payment is an important part of your home financing, but it's not the only thing to consider. These are the two most common types of mortgages: fixed-rate and adjustable-rate. If you choose a fixed-rate mortgage, the value of the monthly payments will remain until the end of the term. On the other hand, in the adjustable-rate mortgage, the payments vary according to the value of the rates. With an adjustable-rate mortgage, you may pay more in the early years but save in the later years.

Weighing these two options is a personal decision - some people prefer lower monthly payments and would rather risk paying more in interest over time; others prefer lower rates and would rather take on a larger down payment now. To figure out what's best for you, make sure to compare both and see which option will work with your budget and goals for your future home purchase.

How much should my down payment be?

The amount of your down payment will be determined by how much you can afford and what kind of mortgage you want. There is always more beneficial when you have money saved. A 20 percent down payment is best because it reduces your monthly payments and could get you a lower interest rate.

Sufficient cash on hand guarantees that the lender will approve your loan. If you're not sure how much you'll need for a down-payment on a home, talk to a mortgage professional who can help guide you in the right direction.

**Tips on where to start your search: **You'll need to figure out what type of house or condo works best for your needs and budget. If you do not know where to start looking for homes for sale in Atlanta GA, talk with a Realtor (real estate agent) who specializes in homes like yours. They can help narrow down your search and make it easy to find new listings that match what you're looking for.

A mortgage rate, how does it affect me?

A mortgage rate is an interest that is paid throughout your mortgage. It's usually quoted as an Annual Percentage Rate, which means it includes all interest and fees over the year. Therefore, your monthly payments are dependent on your mortgage rate. A good rule of thumb is to try to get a 30-year fixed mortgage with a low-interest rate.

What is an ARM, and do I need one?

One of the more complex terms you'll come across when buying a home is an adjustable-rate mortgage (ARM). An ARM is a bank loan that has an interest rate that can be adjusted every six months. It's best to go with one of these if you don't think you'll be living in your home for at least five years. The good news about ARMs is that they typically have lower interest rates than fixed-rate mortgages, so it's worth considering if you plan to live in your home for less than five years.

Conclusion

Don't be afraid to take the step. Buying a home is the right decision for many people, and it's an even better decision when interest rates are low. If you follow the steps in this guide, you'll be able to find the perfect home for you and your family.

But buying a home isn't without its challenges. We've shown you how to address some of the most important considerations when purchasing a home, but if you're still unsure about anything, it's worth your time to speak with a financial advisor or real estate agent. Who better than them to get you out of any doubt and guide you in the process.