So you want to be a First- Time Home Buyer? | @IamLaurenLyrics
Lauren Allah is a 25-year old powerhouse that not only is an entrepreneur, owner of @KatchKollection, but also is a Licensed Realtor. After graduating college and starting a 9-5, Lauren realized she wanted more money and more time to do what made her happy. As a Realtor she has been able to get both, making more money selling real estate part time and having the time to focus on her business, which she found difficult to do at a full-time job. Twenty Somethin' & Black caught up with Lauren to share with us how to prepare to be a first-time home buyer.
BF: What is the difference between buying a home versus a condo?
Most condo's have a monthly association fee which typically minimally cover the cost of your lawn care , snow removal and outside maintenance. This is typically the determining factor for those who choose to buy a condo over a residential home.
What do I need to do to get prepared financially to be a home-buyer?
When preparing to purchase a home, you must realize its more than just being able to pay your down payment and monthly payment but a homeowner is also responsible for the upkeep and maintenance for the property as well. If coming from an apartment , this could prove to be overwhelming.
How long does the process take to ‘get the keys’?
It takes approximately 30-45 days to close a typical transaction.
What are the pros and cons to buying a home in my twenties?
The pros: if you're able to obtain a good deal while interest rates are low, your mortgage payment will likely be far more reasonable than rent. The cons: you may feel a bit confined. Many young adults wake up and decide to move out of state, decide to go back to school etc. homeownership means more commitment than a 12 month lease so you have to know you're ready.
Should my best friend and I buy a home together?
Absolutely not. You two will likely eventually grow apart whether one enters into a relationship and or decides to have a family of your own. If so, do you sell the property? Do you buy the other out? Is it a 50|50 split? Many problems could arise in a situation like this.
Can buying a home or condo help my credit?
Yes, having a mortgage can actually increase your credit score.
What loans are available for first time home buyers?
FHA offers a program for low to moderate incomes which can give a buyer up to $7500 in grant funds to be used toward your down payment and closing costs.
If I have “bad credit” am I still able to get a loan for a house? No.
How can my job help me in buying my first home? Do jobs offer assistance?
Each employer is different. You would need to contact your human resource department to see if they offer any incentives for a home purchase.
Anything else I need to know if I’m interested in buying my first home or condo?
Continue to save, save, save. There are lists of costs and upfront expenses that most buyers aren't aware of such as the cost of the appraisal, Inspection moving expenses. These costs begin to stack up pretty quickly. So, the more you save, the less stressful your purchase will be.