Are you shopping for your first home? If so, the start-up costs can be extremely overwhelming and discouraging, especially if you are on a tight budget. Not only is buying a home expensive, but the property taxes that come with your home purchase can also be a cost you may not be prepared for. To ensure you have a successful and affordable home buying experience, you may want to consider applying for a first time home mortgage. There are many benefits and features that come with a first time home mortgage, such as the following:
Low Down Payments:
A traditional down payment on a home can be as high as 25% of the home's value. This percentage rate is a large sum of cash to put down on a home, especially if you are looking for a higher priced home in a safe neighborhood. If you are concerned about saving this type of cash, definitely consider a first time home mortgage, as you can pay as high as 3.5% down, which is far cheaper than the alternative.
Property tax and loan interest can definitely be an expense that can hurt you financially; however, with a first-time mortgage, you will be able to claim your property taxes and the interest rate on your loan on your yearly taxes. This will save you thousands and make owning a home much easier. Not only will you save on property taxes and interest rate expenses, but you will also be able to sell your home without having to pay sales tax on any profit that you make.
Co-borrowers on the Loan:
If you don't have the best credit and need help applying for your first home loan, you will have the option of asking your parents or someone else to help you co-sign your application. This option will make your application appear much stronger so you can get the best interest rate and loan terms. This feature can help many first time home buyers, as you won't have to wait years for your credit score to get better.
These benefits and features make buying your first home much more convenient. So, rather than stress about coming up with a tremendously large down payment or having to wait years until your credit is in good standings, definitely be sure that you take advantage of these opportunities that you can receive as a first time home buyer. For more information about home mortgages, visit McHenry Savings Bank.