Buying a home is a lesson in large-scale investing. A person goes into mortgage debt to purchase a home that will appreciate in value as the years go by. The first time anyone buys a house is a learning experience where major mistakes are possible. It helps to know who participates in house buying and what situations must be avoided. We suggest the following ideas.
Who Should a First-Time Buyer Know?
- A real estate agent. That property professional helps you navigate the home-buying process and provides valuable guidance. This is the individual who assists a first-time buyer in negotiating with sellers and will handle the paperwork involved in the transaction.
- A mortgage broker or loan officer. A mortgage broker loan officer helps a first-time buyer understand all the financial options and helps with the mortgage application process. They are the ones who can assist in getting preapproval for a mortgage.
- The home inspector. A prospective property may have some severe issues underneath the floorboards. The home inspector identifies fundamental problems before the buyer makes an offer. Inspectors will thoroughly check the property and provide a detailed report. Furthermore, a home inspection is required for an FHA loan.
- An insurance agent. Homeowners insurance is necessary; a good agent helps find the right policy to protect that property investment. The agent also helps a person understand legal issues that may arise during home-buying.
These people help first-time homebuyers protect the financial wellness of that person who goes through the most expensive purchase ever experienced. However, some situations must be avoided in the home-buying process.
Situations to Avoid
- Overextending yourself financially. Purchasing a house can threaten financial wellness. First-time homebuyers 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 should not fall in love with houses. It requires taking a step back to be sure the home is a good investment that meets present and future needs.
- Forgetting about a home inspection. Skipping the home inspection can result in unexpected and expensive repairs later.
- Forgetting to factor in additional costs. The mortgage is the primary cost but is not the only expense. Other costs associated with owning a house include property taxes, insurance, and maintenance costs. Not factoring these into the budget is a mistake that can impact financial wellness.
There are other matters first-time buyer needs to know about. A little extra knowledge beforehand can save thousands of dollars. Countrywide Pre-Paid Legal Services has a financial wellness benefit homebuyers will appreciate.
We Educate Beginners
Our self-study program, “Make Your Move,” assists a plan member in preparing to buy a house. Practical advice and suggestions are found on every page of this educational tool. But, it is not the only way we will help. Countrywide has a nationwide network of certified counselors who offer professional assistance dealing with everyday financial wellness issues.
For example, the counselor can suggest how to structure the budget to meet mortgage payments and what type of mortgage programs can make only a house more affordable. Our counselors also assist in other matters, such as college debt, rising medical costs, and surviving bankruptcy. The counselors will guide plan members to their financial goals. Every benefit plan is tailored to meet the needs of the client’s workforce, 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 financial means necessary to afford the investment. Our other financial wellness services can make financial worries go away. If you have any questions about our programs, please contact us at your earliest convenience. What we have is something every employee will benefit from.