Guest Blog By: Lisa Roberts
Buying a home is an exciting process. As sellers are returning to the housing market, buyers are expected to follow. However, for first time home buyers, this process usually comes with some fears and concerns. Since the consequences of buying are home are serious, anxiety is quite understandable. Let’s see what some common fears are and how to alleviate them.
Not having money left after the down payment
A lot of people believe that when buying a home for the first time, you need to put down your whole life savings to pay for the down payment. However, there are assistance programs and FHA loans that can help you with this expense. An FHA loan requires just a small portion of the down payment, meaning that you’ll be able to get maximum financing even with an average credit score.
It’s hard for first time home buyers to apply for a loan
The application process requires a lot of paperwork. As this is not something most people like, only the thought of assembling the necessary documents can trigger some fears. However, this isn’t a reason to be afraid. Remember, lenders want you to go through this part smoothly, so a good lender will provide you with a list of documents you need to gather. You’ll need to provide pay stubs from the last 30 days and W-2 forms from the last two years, among other paperwork.
The fear of buying a house with critical issues
No one wants to buy a house only to realize that there’s a need for costly renovations. Nowadays, there are ways to make sure that you’re making a sound investment. First off, knowing which questions to ask before buying a house is helpful. Also, a home inspection, survey, title search, and insurance are some of the ways to ensure that you won’t experience any unexpected issues with your home.
Buying a house and not liking it afterward
Sometimes, you buy a shirt and just in a couple of hours, you don’t really like it anymore. Buyer’s remorse is a feeling that can happen even in the case of more serious purchases. First-time home buyers sometimes start thinking that this home is just not the right one. However, these feelings are usually related to nostalgia for the old home. And they also have to do with uncharted territory and a new environment.
When you put everything in order once you settle, these feelings might change. After you adjust and give your new home a chance, you might end up loving it! However, as this is a serious purchase, think carefully before buying a home. And remember that you’ve thought this out carefully. This will help if you start having concerns about the possibility of not liking your new house in the future.
Not being able to pay the mortgage
Due to unexpected circumstances, someone might not be able to pay their mortgage. As this is not such an uncommon occurrence, there are ways to overcome this issue, should it occur, such as loan modification, refinancing, etc. Call your mortgage company and see which programs they offer in case of this situation.
First time home buyers worry about overgrowing their home
After buying a home for the first time, your needs might change. Your family might expand and you might need an even bigger home. The way to tackle this potential issue is by buying a larger home the first time around. However, if you’re not in a financial situation to do this right now, remember that there’s something people call a starter home. After all, you have to start somewhere.
The fear of feeling tied down
After renting for a long time, you might have gotten used to it. It gives you the freedom to change your location and live anywhere you want. If the street is too busy, or the apartment is too small, you can just move. However, when paying rent, you’re essentially spending money that you could otherwise use for paying off your new home. Choose wisely, and if the time has come to settle down, consider buying a home.
Not knowing what you’re doing
Buying a home is a complicated process with serious consequences. You need to know the market to be able to find the right kind of properties, negotiate with sellers, etc. Basically, you need to have knowledge and skills to successfully buy a home for the first time.
Reasonably, it can feel overwhelming and leave you feeling insecure. However, you don’t need to know every single part of this complicated process if you have someone by your side. Real estate agents who know the market are precious, especially to first-time home buyers. They not only lead you through this but will also handle some tasks for you. So it’s understandable if you don’t know how to negotiate or don’t like to. And as long as you have a good real estate agent by your side, you don’t need to.
Does the agent have your best interest at heart?
While listing agents represent sellers, buyers need agents with their best interests at heart. The buyer’s agents will be bound to act for your benefit. They will use their skills on your behalf and follow the direction that you give them.
How to conquer common fears of first time home buyers
While fear and anxiety that first time home buyers experience are normal, these feelings shouldn’t discourage you. You need to approach this new beginning carefully and you’ll lower the chances of your doubts coming true. After that, all that’s needed is that you acclimate to the new environment. Remember, this is a new beginning, the one that you should celebrate and enjoy.