Buying a home is a lesson in large-scale investing. A person takes out a mortgage to buy a home that will increase in value over the years. The first time someone buys a house is a learning experience where big mistakes are possible. It helps to know who is involved in home buying and what situations must be avoided. We suggest the following ideas.
Who should a first-time buyer know?
- A broker. This real estate professional will help you navigate the home buying process and provide valuable guidance. This is the individual who will help a first-time buyer negotiate with sellers and will handle the paperwork involved in the transaction.
- A mortgage broker or loan officer. A mortgage broker helps a first-time buyer understand all financial options and assists with the mortgage application process. They are the ones who can help you get pre-approved for a mortgage.
- The home inspector. A potential property may have some serious problems under the floorboards. The home inspector identifies basic problems before the buyer makes an offer. Inspectors will thoroughly check the property and provide a detailed report. Additionally, a home inspection is required for an FHA loan.
- An insurance agent. Home insurance is necessary; a good agent will help find the right policy to protect that real estate investment. The agent also helps a person understand legal issues that may arise during home buying.
These people help first-time buyers protect the financial well-being of the person going through the most expensive purchase ever. However, certain situations must be avoided in the home buying process.
Situations to avoid
- Exaggerate yourself financially. Buying a house can threaten financial well-being. First-time home buyers must stay within their budget and avoid buying more than they can afford. It pays to be realistic in the long run.
- Emotional decisions. You fall in love with people, but you shouldn’t fall in love with houses. It requires taking a step back to be sure that the home is a good investment that meets current and future needs.
- Forgetting a home inspection. Skipping the home inspection can result in unexpected and expensive repairs later.
- Forgot to factor in extra costs. The mortgage is the primary cost but is not the only cost. Other costs associated with owning a home include property taxes, insurance and maintenance costs. Not including these in the budget is a mistake that can affect financial well-being.
There are other things that first-time buyers need to know. A little extra knowledge ahead of time can save you thousands of dollars. Nationwide prepaid legal services have a financial wellness benefit that homebuyers will appreciate.
We train beginners
Our tutorial program, “Make Your Move,” helps a plan member prepare to buy a home. Practical advice and suggestions can be found on every page of this training tool. But that’s not the only way we can help. Countrywide has a nationwide network of certified advisors who offer professional assistance in dealing with everyday financial well-being issues.
For example, the counselor can suggest how to structure the budget to meet mortgage payments and what type of mortgage program might make just one house more affordable. Our counselors also help with other issues, such as college debt, rising medical costs, and surviving bankruptcy. The advisors will guide plan members to their financial goals. Each benefit plan is tailored to meet the needs of the client’s staff, and the client organization is involved in developing the benefit.
Owning a house is a source of pride for many people. It shows that they have the necessary financial means to afford the investment. Our other financial wellness services can make financial worries disappear. If you have any questions about our programs, please contact us as soon as possible. What we have is something that all employees will benefit from.