Farragut First Time Buyers – Can You Afford To Buy a House?

imagesFor many Farragut first time buyers, when it comes to debating buying a house versus renting, it can sound a lot more enticing to pay money towards a mortgage, rather than throwing it away by paying rent. With mortgage rates still low and home prices slowly rising, many first time buyers are considering buying there first home. Before making the plunge into home ownership, it is important to understand the cost of owning a home. Read on below to find out more about what costs come with owning a home.

1. Your mortgage payment. When you first meet with a loan officer, they will be able to give you and understanding of what your monthly mortgage payment will be. Most likely, as a first time buyer, property taxes and homeowner’s insurance will be part of your monthly mortgage payment, just be sure to double check with your lender. Consider what mortgage payment your approved for and how it would fit into your budget.

2. Your loan type. Depending on your situation, you may have a few different choices of what type of loan you qualify for. Talk to your loan officer about what your options are and what costs are associated with those loans. Some loans have specific requirements about down payments or mortgage insurance requirements. A loan officer will be able to help you decide what is best for you.

3. Closing costs. There are a wide-array of closing costs that come with buying a home discount points, homeowners insurance premiums, title insurance, closing fees, and transfer taxes are just some of the few costs that come with closing on a house. Your loan officer should be able to give you an idea of costs. There are also ways of getting your closing costs covered including grant programs through the Tennessee House Development Agency or just having the seller pay your closing costs. If you have concerns about closing costs, be sure to talk to your Realtor or loan officer to see what your options are.

4. The cost of moving. Do you plan on hiring movers? Do you plan of renting a moving truck? Will you need to buy moving supplies? Consider what you out of pocket expense will be for the actual move.

5. Cost of repairs and emergency funds. As a homeowner, it is important to have an emergency fund for the unexpected. Generally, it is suggested to have a few months of reserves to pay your bills just in case. Do you have enough in your savings to prepare for that?

Are you thinking about buying a Farragut home this year? Please let us know if there is anyway that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at Kati@KnoxvilleHomeTeam.Com. Also, be sure to check out our Farragut Home Search Page.