There are many steps to take when purchasing a house. The thought of finally buying your own house can be exciting, but it can also be confusing, stressful, and overwhelming at the same time. As a first-time homebuyer, surely you’ve got a lot of questions. If you’ve been asking yourself “where do I start?“, then the best way to begin your home buying journey is by being prepared and ready.
If you’re just getting started and have tons of questions, here are the answers to some of the most common questions we often hear from first-time homebuyers in Houston…
Why should I buy a home, instead of rent?
Renting has its own perks and drawbacks. For one, it offers flexibility depending on your circumstance. Homeownership, on the other hand, gives you a sense of permanence. Generally, a mortgage tends to be less than your monthly rental payment so why pay your landlord when you can have your own home in the future, build equity. and potentially sell it in the future for a profit. Check here for today’s mortgage rates in Texas.
What is the benefit of employing a real estate agent?
A real estate agent specializes in handling all aspects of home buying from start to finish. If you think, you need help in handling all the paperwork, even to look for the right Houston property, Apex Pro agents can assist you in determining the right offer that fits your budget up to the complex process of closing. If you’re worried about middleman costs, real estate agents are free for home buyers; the seller pays all the Realtor’s fees associated with selling the home.
How long does it take to buy a house?
Many factors affect the timeline of the home buying process, but the average time to shop and close a house is from 4 weeks to 6 months, or even more. But it can be quicker if you buy with cash, or the paperwork is done quickly by your agent. But if you’re buying a home through a loan, or if you’re financing, the loan approval is out of your control which can take longer since you still need to get pre-approved first.
How much house I can afford in Houston?
If you’re buying a home through financing, there are multiple factors that your lender will look at aside from your income such as your credit score and existing debt. Moreover, the general rule is that no more than 25 to 30% of your monthly income should go to your monthly mortgage payment, which includes taxes and homeowners insurance. Another common rule is that the cost of your home should not be more than two and a half times your net annual salary.
How much do I need for a down payment in Houston?
You might have read or heard that you need to make at least 20% of the home’s purchase price to secure a loan. While it’s true that the more you put down on your home, the better your interest will be, you may not have to. There are many factors that will decide the exact amount of your downpayment like your credit score or the type of mortgage you’re getting. Fortunately, there are programs available for first-time homebuyers like the Federal Housing Authority (FHA) and the Veterans Administration (VA) loans. FHA allows you to put as little as 3.5% downpayment, while VA allows zero downpayment.
What credit score do I need to buy a house for the first time?
While most loans require a credit score between 580 and 620, the minimum credit score to qualify for a mortgage still depends on the type of mortgage loan. First-time homebuyers in Texas, having a credit score of 620 or more is good, but there are programs available to reduce this credit score, as well as assist first-time homebuyers in their downpayment.
Are there hidden costs?
Yes, there are ‘other costs’ related to home buying and not just the price of the home, or the downpayment that you’ve been saving. That’s why it’s best to consider in the early process of home buying your overall budget. Here are most likely the ‘hidden costs’ of buying a home:
- Earnest money
- Closing costs (2% to 5% of your home’s value)
- Property taxes
- Homeowner’s insurance
- Funding The Escrow Account
- School Taxes
- Private Mortgage Insurance (PMI)
- Interest Rate
- Moving Costs
- Home maintenance and repairs
- Utilities
- Homeowner’s association fees (HOA)
Should I buy a property that is still under construction or one that is ready to move in?
Buying an under-construction home vs a ready-to-move-in house serve different purposes and intents. In terms of price, homes that are being built are less expensive, but the risk is in the delays of construction. Ready-made units are readily available to the buyer and are free from GST applications.
Are there other questions you have that you’re afraid to ask?
Don’t be! Even if you’re a first-time homebuyer, it’s crucial that you are informed and aware of the home buying process in your state. We are here to help. The real estate agents at Apex Pro have helped and assisted countless first-time home buyers in all of their home buying needs from start to finish. If you’d like us to address any other questions just post them below or contact us and we’ll get you an answer! In the meantime, check out our Mortgage Calculator to know the estimate of your total mortgage payment. Happy house hunting!
About ApexPro Real Estate
ApexPro Real Estate Group is a full-service real estate brokerage specializing in single-family and attached residential properties throughout Houston and the surrounding areas. We are a privately-held small business that brings together top agents, cutting-edge technology, and unparalleled service to help clients throughout Houston to buy and sell real estate — and enjoy themselves every step along the way. Our client reviews exhibit our dedication to helping our clients extends beyond the closing table and we would love to earn your business.