If you’re a first time homebuyer, we hold a special place for you at Starboard Financial. We understand that being a first time homebuyer can be a new and uncertain adventure. A sea of uncharted waters, if you will. But giving advice and helping the first time homebuyer navigate the home buying process is one of the reasons we started our company in the first place. Being there for you, the first time homebuyer, is a top priority for us.
To that end, we have a variety of resources to help you chart your course as you make your first home purchase. As we mentioned, we get that this experience can be overwhelming. So, to help you on your journey, we have put together the following resources:
- Purchases Made Easy – A step-by-step guide to a typical purchase process
- Finding YOUR Agent – Tips to help you select the appropriate real estate partner
- The Starboard Loan Process – A guide to how Starboard Financial will proceed through the important stages of your loan qualification
Of course, there are plenty of other places to get advice, too. Have you ever watched HGTV? We know that a lot of their shows are scripted, but it can also be a lot of fun to watch those first time homebuyers as they look for their perfect first home. When it comes to your own first time home buying experience, we caution you not to get caught up in the fun of looking before you’ve taken care of one of the most important part of home buying: your financing. Here is some advice that we actually found on the HGTV website:
- It’s great to have your financing in place before you look because houses are bought and sold overnight. You could lose your dream property waiting to secure the financing.
- The rule of thumb is that you should be able to afford a mortgage three times your income.
- Lenders subtract any debt payment from your income, so if you have a big debt, you have a lot less income — and a lot less house.
- Don’t forget to set aside money for closing costs when budgeting out what you can afford. It’s typically 1-1/2 to 2 percent of the purchase price. That goes toward the land transfer tax and pays a lawyer.
- When you buy new, you have to put down 10 percent within six months or 15 percent within nine months. Also, until the place is registered, you can’t get title. Until you get title, you can’t place your mortgage, so during that time you’re paying what’s known as a phantom mortgage or an interim occupancy fee that goes toward nothing — it’s like rent.
- It’s better to walk away if you’re not comfortable with the situation.
Not bad advice from a TV network. But, you can’t learn everything there is to know from watching TV. So, when you’re ready to buy your first home, we invite you to reach out to us at Starboard Financial. We are here for you, and we want to help make your experience as a first time homebuyer smooth sailing!