What every first time home buyer needs to know? 

Many people get tired after years of renting, so they decide to purchase a house for the first time. It is not easy to rent an apartment, as it can be quite stressful. You always have to worry about being kicked out if a landlord decides he no longer wants to have tenants. Also, it is a nice feeling to know you have a place all to yourself, which no one can take away from you. A home you can enjoy with your family, without having to worry about rental issues. Additionally, the real estate value is continuously increasing over time, so buying a house is a wise decision from an investment aspect as well.

Think about it, when renting, you are spending money on payments every month, and in return, you get nothing. If you get kicked out after years of renting and spending thousands of dollars, you will be in the same position that you started in. The difference is, you spent a lot of money that you won’t get back. If you decide to borrow funds from a reputable mortgage lender, such as Moreira Team, you will have to cover monthly loan obligations for a long time, but at the end of this process, you will own a house. You will not waste any money, in fact, the opposite thanks to the increasing value of homes; you will get even more than you invested.


As you can see, applying for a home mortgage loan is a wise decision. However, before doing that, you need to have at least basic knowledge of the home buying process. You can take a look at Moreira Team – First Time Home Buyer. Taking out a home mortgage is a huge deal, and you have to be prepared. Remember, you will need to pay obligations for money borrowed for decades, and a lot can happen during this period. It would be ideal to have a constant source of income for the next 20 or 30 years, depending on the loan term. In other words, you should earn cash as long as the mortgage obligation exists.

Also, it is not enough to make enough money during the life of the loan; you need to have some funds set aside for the down payment. If you do not know anything about this, it is your contribution towards buying a house. Usually, banks provide up to 80% of the value of your future home, when applying for a loan. You need to pay the remaining 20% upfront in the form of down payment. For many individuals, their choice of houses depends on their ability to cover the initial home investment.


Also, if you want a mortgage lender to borrow money from, you need a high enough income. Your earnings should be sufficient to meet the living expenses of your family. Up to 60% of your net income can go towards paying expenses such as utility bills, credit card obligations, car loan rates, and mortgage payments, but the recommended amount is between 30% and 40%.

When you get approved for a mortgage loan, it is time to start looking for the perfect house. Make a list of requirements, and search for a property that meets them. When you come across an ideal house, purchase it. However, you need to be aware of additional expenses, such as closing costs, funds for interior decoration, furnishing, repairs, monthly maintenance, and more. Also, before signing a contract, make sure all the legal documents concerning your house are in order, such as title deeds and sale agreements.