Buying a home for the first time is a dream for many. It’s a dream that seems quite out of reach for some. Life happens. People fall in love, get married, have kids, get divorced, switch careers, go back to school, and none of it is on the schedule we planned out.
With each one of those changes, comes financial difficulty. It always seems to lurk in the background. So, eventually, many people give up on the idea of being in a home of their own and just carry on the best way they know how. However, there are a few ways that the dream of buying your first home can come true. Below are three of them.
Save, Save, Save
When we are growing up, money has almost god-like power to us. Hopefully, parents do their best to teach us how to use it, what a wise purchase is, and how to budget. This includes teaching us how to save. Now, reality says not all of us will make the same amount and, thus, won’t be able to save as fast as some others.
However, if a person started saving 10% of a paycheck where they made $500 a week, they would have $2,600 in just the first year. At that rate, in 10 years, you could have a decent down payment on a home. Understandably, this takes some time, but if you started at 18 years of age, you could be in your first home before you were 30 and would maintain a great sense of accomplishment, as well.
First Time Home Buyer Loan
Have you ever just steered clear of tasks that just seem overwhelmingly hard? Many of us have. Buying a home for the first time can be one of the most overwhelming tasks there are. Huge price tags, the responsibility of self maintenance, and knowing that your commitment to make your monthly mortgage payment on time will be tested again and again is enough to scare anyone off.
Then, you have the first time home buyer loan. This loan offers a chance at paying only 1% of the price tag as a down payment, smaller mortgage payments, and the option to defer payments.
As we journey through life, and all those ups and downs, the financial difficulties spoken of earlier can damage your credit time and time again. One of the major benefits of an FHA loan is that it’s possible to qualify for a home loan with a credit score of 580 or less.
And if you’re not rich, like the majority of Americans, an FHA loan helps by lowering the down payment required and lowering the mortgage payments, as well. Some, bring the down payment as low as 3.5% of the principal amount.
In the end, buying a new home is only as intimidating as you make it.