Having to navigate your way through a home purchase isn’t a simple task at all. There are many aspects of which you’ve probably never even heard. Nevertheless, getting overwhelmed is never the answer. Make sure to take some time to do the research that’ll help you grasp everything that you’ll need to do. This will make the venture that’s ahead of you seem much less frightening. Especially for those that are first-time home buyers in Maryland, things are not as scary as they may seem. What’s more, you surely have some benefits to look forward to since the real estate market is very welcoming to its newbies.
Have your finances in order
Before you start investing in a home or make any moves towards that goal, make sure that you’re aware of your financial situation. It may not be enough to simply have a steady job in order to purchase a home. If you’re learning about first-time home buyers in Maryland out of sheer interest, know that you should start saving as early as possible. Savings are what’ll get you ahead in this market. Another thing that’s a must in the homebuying business is setting a firm budget for yourself and not going over it. There’ll always be a property that’s just a bit better than the last. However, you must be realistic and set your boundaries from the get-go.
Are you eligible to buy a home?
Most Maryland first-time home buyers don’t really know if they’re eligible to make a home purchase or not. It all depends. However, you’ll be happy to know that the DHCD in Maryland is especially kind and generous to its first-timers. They give financial assistance and mortgage programs to help people who may not be in an enviable situation at the moment.
Know that you may fall into this category even if it’s not really your first time purchasing a property. If you haven’t been an owner over the last three years or belong to the VA community, you’re a first-time homebuyer in the eyes of Maryland real estate.
Online programs for first-time homeowners
There are also some programs that you can access from the comfort of your home if you’re a first-timer.
This program is an online course and it has the HUD approval stamp. Here, you’ll get to know just how much house you’re able to purchase, how to pick the best companies to guide you, and whether you should get your home inspected.
HOPE (Housing Options & Planning Enterprises) deals with teaching first-time home buyers in Maryland about making a successful purchase. It won’t only offer knowledge on purchasing a house but also maintaining it later on.
- Genworth Mortgage Insurance
This course that’s available in multiple languages, will show you the ropes when it comes to finding and buying a house, mortgage details, as well as figuring out your financial situation.
Advantages that first-time homebuyers in Maryland have
As a first-time homebuyer in Maryland, you’ll have some advantages.
- You can get a mortgage with really good interest rates for up to 30 years.
- If you’re not very confident in your abilities, you’ll get proper assistance. Make sure to use it wisely and ask away.
- There are also rate discounts that certain homebuyers will get, see if you fit the description.
- You may be able to combine multiple programs so that you can save a bit more.
Taking out a loan for first-time home buyers in Maryland
All the first-time homebuyers in Maryland are in luck. DHCD has a great program for first-timers that offers substantially low fixed rates which makes homebuying a lot easier. If you qualify to take out a loan, here’s some info that could be useful:
- The first type is a direct loan. Here, you’ll have the best rates and will be able to use alternative types of purchase assistance.
- The second type of loan is the 5000 loan which offers a set sum of $5,000 that you can use for different homebuying-related ventures.
- The third and final thing you can do is opt for the 3% loan. Make sure that you’re aware that you cannot combine this loan with a DHCD program.
Loans you’ll have at your disposal
- Conventional mortgages
If you go with a conventional mortgage make sure that you’re completely aware of what you’re getting yourself into. These loans aren’t government-approved.
Unlike the previous type, FHA is approved and guaranteed by the government. If you don’t have an ideal credit score, you’ll still be eligible for this loan. Make sure to talk to whoever’s in charge and ask about all the details so that you’re in the clear and there aren’t any surprises later on.
If you’re searching for a home in a smaller rural place, this is the loan for you. They have Single-Family Housing Programs that you can explore to see whether you’re eligible.
If you’re a member of the military, you’re probably already aware of this program. You can use an online calculator that lets you see what your monthly rate will be.
Relocation can be tough
Something that you should never neglect when purchasing a home is the relocation that’s ahead. There are many aspects of the upcoming move that’ll be completely foreign so it’s best if you prepare for it the best you can. Some details like finding storage for your belongings or looking for the right way to deal with bulky items may not seem all that important right now. However, even the slightest delay can impact the rest of your relocation significantly.
Choose a real estate agent
Make sure to pick a good real estate agent to guide you through your first home purchase. Investing in real estate is a very big deal and you’ll want to do it right. One of the most important steps is surrounding yourself with the right people that have your best interest at heart.
Hire a reliable moving company
Again, there’s nothing like having a good team on your side. Once you’ve found your home and have purchased it, you’ll also need someone experienced to relocate you and help you settle down. Teaming up with Here & Now Movers will guarantee that you know what you’re getting. They’re transparent, experienced, and very reliable.
Visit many open houses
There’s nothing like the value of experience. If you’re looking for the perfect first home, make sure to visit as many open houses as you can. This way, you’ll be able to get an objective outlook into the quality and the prices that your market offers.
A home inspection is necessary
Before you settle down on a property, make sure that you know what you’re getting. Getting your home inspected thoroughly and in great detail will up your chances of success. Don’t shy away from it because you don’t want any mistakes found. It’s better to run into some problems in the beginning than to have a nightmare you cannot deal with later on.
Purchase home insurance
Prior to closing the deal, you’ll want to purchase home insurance. This is usually something lenders ask of everyone, even first-time home buyers in Maryland. If need be, this insurance will cover any repairs that you’ll need to get down the road. The bigger you invest now, the better you’ll be covered later.