If you are a first time home buyer, congratulations! Buying a home is one of the biggest – and most exciting – milestones you’ll ever reach. That said, it is not without its challenges. A lot can go wrong, from coming up with a down payment to dealing with unexpected repairs. These problems can affect your financial well-being. There are four common problems that first-time buyers face.
1. Comes with a down payment
One of the biggest obstacles for first-time buyers is coming up with a down payment. The typical down payment can be as much as 20% of the purchase price, which can be difficult—or even impossible—to scrape together, especially if you’re already saddled with student loans or other debt. Paying such a hefty sum will also affect your financial well-being.
If you’re having trouble with a down payment, there are a few things you can do. The earlier you start saving, the more time you have to reach your goal. It would help if you also considered enlisting the help of family or friends. And finally, don’t forget government programs designed to help first-time buyers.
2. Dealing with unexpected repairs
Another common problem that first-time buyers encounter is unexpected repairs. Whether it’s a leaking faucet or a cracked foundation, repairs can be costly — and they’re often needed as soon as you move in. They can quickly put a dent in your savings account if you’re not prepared for them.
One way to avoid getting confused by repairs is to get a home inspection before you buy the property. This will give you an idea of what needs to be fixed and how much it will cost. You should also set aside some money each month to have funds available for unexpected repairs.
3. Struggling with mortgage payments
For many first-time buyers, paying their monthly mortgage is one of the biggest challenges. If your income fluctuates or you have other debts to pay off, it can be challenging to stay on top of things – and falling behind can put your home in foreclosure and hurt your financial well-being.
If you’re struggling to pay your mortgage, consider talking to your lender about changing your loan agreement. Also, consider looking into government assistance programs designed to help homeowners in need.
4. Management of HOA Fees
If you’re buying a home in a planned community or apartment complex, chances are it comes with monthly or annual Home Owners Association (HOA) fees. These fees are used to cover shared expenses such as landscaping and building maintenance. They can add quite a bit to your monthly payments, so it’s important to factor them into your budget before buying a home that comes with HOA fees.
Gather the knowledge you need
Nationwide prepaid legal services can help the first time buyer. We have a self-study course, “Make Your Move”, which allows an individual to understand real estate better. We also have a nationwide network of certified advisors who provide expert guidance.
Our financial wellness benefit covers more than just buying a house. Credit card management, bankruptcy issues, and medical bill and college debt management are some of the services we provide.
By working with a client organization, we create a financial wellness benefit that everyone can use. We include what management wants in the plan and provide member service and administration. What were previously terrible problems are solved with the help of Countrywide. Nationwide advisors answer questions and provide excellent advice.
First-time home buyers often face several challenges when purchasing their first property. Unfortunately, there is a lot that can go wrong. Nonetheless, Countrywide offers information that home buyers need to create a seamless home buying experience. If you have any questions about our services, please contact us at your convenience. We would welcome any opportunity to explain our financial wellness benefits to you.