Couple outside of first home

11 Mar

Time to Buy or Time to Wait? First Time Homebuyers Quiz

Are you looking for a starter home or fixer upper? As you begin your search, it’s important to not overlook the small details and costs.

You may be looking to purchase a new home, or to fix up your old home before selling it. Either way, you may not realize just how much you need to save before you begin either venture.

Here are a few tips to remember as you consider applying for a loan:

  • Know the type of loan you’re looking for. There are many loan options offered by financial institutions, but the following loan types are available with Signet Federal Credit Union.
    • Adjustable Rate Mortgage: If you’re looking to purchase a starter home or a house to flip, you might consider this type of mortgage. This will have a fixed interest rate for a certain number of years. After that date, you may see an increase or decrease of that initial rate.
    • Home Equity Line of Credit: If you’re looking to update your home or rental property, this might be a good option for you. This loan is a variable rate mortgage which means it can increase or decrease on each review.
  • Check and double check your budget and savings. What you don’t want to do is only look at the amount you’ll be paying each month for your loan. There are many other costs associated with buying and living in a home that you do not have to plan for with a rental property. You don’t want to dwell on worst case scenarios, but at least consider a few as you plan.

You can take this quick quiz to give you an idea of some of the areas you might not have considered yet as you look at purchasing a home. NOTE: This is not official advice or a guarantee of any sort. The best thing to do is to look over your own budget and then talk with a Signet loan officer to explore all of your opportunities before making any final decisions.