Introduction: The experience of buying a home!
Nothing can fully prepare you for new experiences, small or large. On the top of that list is the experience of purchasing your first home and getting your first mortgage. After all, it is one of the most important financial decisions you may have to make in your life. You cannot afford to be pushed into placing your order before you fully understand the financial process of owning a home.
Having an honest real estate agent to guide you through the process can provide you with a certain level of comfort. But some of us get so comfortable that we might allow our agent to influence our decisions.
It is critical that you remain in the driver’s seat as you prepare your budget. Decide on the amount of a loan you can afford to pay back, and do not rely on the pre-qualification estimate or the pre-approval amount you received from your lending institution. According to the U.S. Department of Housing, the housing market collapse of 2008 caused over 2 million American families to lose their primary residences in bankruptcy due to overextended credit lending activities to financially trusting consumers.
Be sure to get all of the facts before you embark on the journey of purchasing a home for you and your family. Start with understanding your budget; calculate how much you can afford a monthly payment and a mortgage loan. Learn all the dos and don'ts as you explore the financial process of owning a home. Most importantly, steer away from first-time home buying mistakes such as not sticking to your budget, choosing a costly type of loan, skipping inspections, not evaluating your non-negotiable items, and not being financially prepared.
It is a lot easier to collect tips on what not to do, but it is more valuable to find out the practical and specific strategies in gaining the full understanding of the financial process of owning a home. This module is structured to provide you with step by step instructions on the financial process of owning a home and to equip you with the tips and ideas of how to make your search for your new home an enjoyable experience.
To move forward to your dreams of buying your first home, let's follow the steps below.
Chapter 1. Key terms you need to know
Chapter 2. Components of a mortgage
Chapter 3. First time home buyer - The search process
Chapter 4. Ways to improve your chances of getting a good mortgage
Chapter 5. Amortization schedule for a mortgage
This was made possible in partnership with The Singleton Foundation for Financial Literacy and Entrepreneurship. This video and more videos like this can be found on Millionstories.com.