FTHBFAQ

No, my caps lock is not stuck on... it's First Time Home Buyers Frequently Asked Questions or FTHBFAQ!

Q: How much money do I need to save before considering buying my first home?

A: It depends, but recently I have seen some buyers come in with as little as $500.  You should have at least $500 saved for earnest money and approximately $300-$400 for a home inspection.  Those are costs that a seller cannot pay on your behalf.  There are still 0% down programs out there like Rural Development and VA loans. And you can ask the seller to pay for your closing costs!  I recommend talking to a local lender to get pre-qualified.  They can let you know specifically what they'd like to see.

Q: Why should I buy instead of rent?

A: #1 Because it's cheaper to own instead of rent in the Bemidji area. With the college rental market driving rent prices up you can buy a similar home for nearly half as much monthly in a mortgage payment than the cost of rent. #2 Tax deductions.  You may be able to deduct the interest you pay on your mortgage and your real estate taxes on your tax return. #3 It's an investment.  Instead of paying down someone else's mortgage you can reap the benefits of home ownership buy owning your own home.

Q: Are foreclosures good deals?

A:  I would caution first time buyers on foreclosures.  There are often unseen issues that can not be detected that you will have to deal with on your own once you are the home owner. Foreclosures are typically sold as-is because the bank has never occupied the property.  They couldn't possibly know all the issues that could be associated with it.  The other problem you may run into is condition.  Many loans that are typical FTHB loans like Rural Development, VA or FHA require the house to be in good condition. And some of those programs won't even finance the home if it is bank owned.

Q: How do I choose a Realtor?

A: There are many ways to choose.  The most common is a referral from a friend or family member that had a pleasant experience with a local Realtor.  You can also choose based on qualifications, like experience, designations, and availability.  You will want to choose a Realtor whom you can work well with and who has the knowledge and experience to walk you through the process.  Buying your first home can be confusing and scary, since it is likely the biggest purchase you have made in your life so far.  But with the right Realtor by your side they should be able to answer all your questions and calm your fears.

If you are a FTHB and have more questions feel free to ask!  You can post here, call, text or email me with questions.  Happy House Hunting!