Here at EveryHome, there’s nothing that we love more than working with first-time home buyers! If you’re interested in owning your own home but (still!) writing a check to your landlord each month, be sure to consider the following:
1. You can likely own a home for a lower monthly payment than your rent. Rental prices have been rising quickly in Greater Philadelphia – and we bet we don’t have to tell you that! Due to high demand for rental homes, landlords are demanding sky-high prices, and we bet that you’ll be able to find a similar home for a lower monthly payment. Be sure to check the “Closing Costs” button located under each house on EveryHome.com for a detailed estimate of monthly fees, including the mortgage principal and interest payment, taxes, and association fees (if applicable).
Plus, most first time buyers put down just 3.5% on the purchase price — gone are the days of required 20% down payments!
Consider these top three Philadelphia suburbs for first-time buyers.
2. If you’re concerned about the maintenance and responsibility for your home, there are a variety of options available. Condo communities are extremely low-maintenance and owners are typically not responsible for any landscaping, snow removal, or upkeep of the exterior of the home. Many townhouse communities also offer a variety of similar services. Worried about a major appliance or system breaking down and having to pay to repair or replace it? Consider purchasing a home warranty, which costs approximately $400 per year and may cover the heating and cooling system, roof, hot water heater, major appliances and more.
3. Still renting because of a less-than-stellar credit score? The federal government recently relaxed its minimum credit score requirement for FHA loans to 580. The previous minimum credit score was 620. FHA loans are popular for first-time buyers because they’re a bit easier to qualify for than conventional loans, and the interest rates are competitive. If your credit score is below 580, or if you’re interested in raising your score in order to qualify for a lower interest rate, be sure to consult a credit repair professional.