Let’s face it, buying a home for the first time is intimidating. But the process doesn’t have to be scary if you come well-equipped with the right information. Dan Steiner, President of Steiner Homes, LTD, gave some tips on how to move forward with confidence and still have fun with the process.
First and foremost, it is incredibly crucial to save.
“I always recommend paying off as much debt as possible before buying your first home, as well as saving as much as possible to cover those unexpected expenses,” Steiner said.
Money expert and fellow partner Marc Ruiz of Oak Partners echoed this sentiment in his April 2019 column, ‘Mind on Money: The best way to approach debt reduction.’
“When the act of saving becomes the motivator, then consumption behavior is naturally impacted as well. Debt accumulation may stabilize, and the household is now ready to address pre-existing debts,” Ruiz said. “In addition, if the emergency fund and six months of expenses accounts discussed last week are funded, then more money on a paycheck to paycheck basis should be functionally available to pay off debt.”
While keeping money on your mind, it’s vital to consider all things when choosing a builder (if you’re choosing to build your first home), and to get a loan.
When choosing a builder, it’s important to keep in mind their specific restrictions and covenants.
“Some things to consider are if they’ll allow for brick or stone, vinyl siding, trim around windows, planting of trees, and more. It’s also important to think about elements like house size formats, types and height of fencing, etc.,” Steiner said. Additional information regarding a breakdown of the entire building process can be found at https://steinerhomesltd.com/about-steiner/.
Home loans come in many forms - VA loan, USDA, conventional, etc. The FHA loan is specifically designed for first-time home buyers and those with lower credit scores. These loans are guaranteed by the Federal Housing Administration (FHA), meaning that the FHA will reimburse the lender if the borrower defaults on their mortgage loan. A first-time home buyer grant may be available for those who qualify. Read more about that here: https://www.usa.gov/buying-home#item-212877.
It’s equally as important to factor in all elements that could generate costs.
“Always consider all costs associated with the building, not just the evident things like the cost of the house itself or sales tax,” Steiner said. “A couple of common costs that new homeowners fail to think of are upgrades like granite counter tops, which are free with Steiner, and carpet-to-wood flooring.”
Lastly, if choosing not to build, it is important to write down everything you see at fault/wrong with the house (after your offer has been accepted). Is there chipping paint everywhere? Can you see excessive caulk around the bathtub or shower? These are the types of things to pass along to the home inspector for checking.
To contact a member of the Steiner Homes, LTD team to learn more about the building process, or to start your home plan today, please visit https://steinerhomesltd.com/contact-us/.