Did you know that there are several types of first-time homebuyers? According to HUD, a first-time homebuyer is a person who meets any of these criteria: An individual who hasn’t held ownership in a principal residence during the last three years ending on the date of their purchase. For couples, whether one spouse has been a homeowners or otherwise, and the other hasn’t owned a house, both partners are first-time homebuyers if neither has been homeowners. In addition, a first-time homebuyer can also be a young adult or between twenty-five and forty years old. They can also be a senior citizen, anyone who owns their own primary residence and anyone who is married and have owned their primary residence for at least five years. Have a look at Mortgage Tips For First-Time Homebuyers In Southern California. to get more info on this.
As a first-time homebuyer, you will find it important to conduct a home inspection to determine your financial ability to afford a residence. This is very important for everyone but especially important for first homebuyers since they have a lot at stake. There is a housing bubble in America and while most people don’t understand that bubble is an actual thing, anyone who does understand that the housing market is now poised to bust. If you are a first-time homebuyer, you are in a position where you can either buy a home that you cannot afford or rent and risk losing your home should you default on your loan.
For first-time homebuyers, there are several options available to help them reduce their mortgage payments and afford a lower credit score. Home equity loans are a popular choice for this group. These loans are second mortgages given to borrowers based on the equity that exists in their residence. Because these loans are secured loans, however, borrowers also face the possibility of losing their homes if they can no longer make their payments.