A little less than a decade ago, there were hardly any challenges for the first-time home buyer up until closing was accomplished. The challenges then presented were unsatisfactory loan terms and mortgages that people couldn’t handle their first time around. Times have changed, and since the housing market reset, the challenges presented to a first-time home buyer in the Boca Raton Real Estate market are now more traditional.
Credit Concerns And Interest Rates
While interest rates are quite desirable these days, credit and interest rates are always a concern for first-time home buyers. Establishing credit is one thing, and it can take time for a person to achieve a track record and a good credit score. This of course have everything to do with what interest rate is secured.
A bad interest rate means that the person’s payments can be significantly higher. This also means that they are paying more money in interest over the life of the loan. Furthermore, this can make it impossible for a first-time home buyer to have a term of anything less than 30 years.
Many people who even account for all the finances in regards to purchasing a home sometimes do not take into account how expensive maintenance can be. When you’re renting, you are not responsible for fixing anything that goes wrong. But as an owner, you are in charge or maintenance and repairs.
On the flip side, if a first-time home buyer makes sure that a thorough inspection of the home is done prior to purchasing, then there shouldn’t be maintenance concerns that are too expensive to handle. Still, a reserve fund for home maintenance should be in place so that they can keep their home in shape.Read More