5 Pro Tips for First-Time Black Homebuyers Posted on June 20, 2019September 20, 2022 By Leigh Langston Black homebuyers purchasing a home for the first time can be frustrating. When all the steps of the home-buying process seem to be working against you just because of who you are, it’s easy to want to just call it quits. However, there are some things you can do to improve your chances, so you might as well give it a shot. While you’ve undoubtedly done a great deal of research already in order to get to this point, you can never be too prepared. Here are five pro tips geared to help Black homebuyers get the most out of this important milestone. Know What You Can Afford As a Black person, trying to get approved for a mortgage can be frustrating because of discriminatory practices outside your control, but don’t give up! Before seeking mortgage pre-approval, compile lists of your monthly and annual expenses. Subtract the amount you pay in rent since you’ll be taking this out of the equation and replacing it with your mortgage payment. Divide the annual expenses by twelve and add this amount to the monthly total. Next, calculate your monthly take-home pay and subtract your expenses from this amount. That will give you a rough idea of how much you can devote to your monthly mortgage payment. With this number in mind, you’ll be able to narrow your search to houses that fall within your price range. Shop Around for Your Mortgage According to financial experts, it can be a mistake to settle with a lending company after receiving just one rate quote. For example, you can find options that allow you to make a low down-payment, which may make it easier for many buyers to finance a home. Visit several banks to see what kind of rates they offer before applying for a mortgage—it could save you a great deal of cash in the long run. If you’re worried that multiple credit checks might harm your rating, don’t worry—as long as the mortgage inquiries are completed within a 45-day period, they’ll count as just one inquiry. Make a Down Payment While it’s possible to buy a home with very little to no money down, it isn’t advisable. The more you’re able to invest up front, the lower your monthly payments will be. If you can afford to put down ten percent of the listed price, you’re in good shape. A word of caution, however: Don’t drain your savings account altogether. Once you own a home, you’ll find that basic maintenance and repairs crop up more often than you may have bargained for. It’s best to have some financial cushioning to fall back on, just in case. Read the Fine Print In addition to going over the mortgage contract with a fine-toothed comb, you should also know what to expect when you move into your new home. While there is an overwhelming amount of paperwork to go through, you’ll want to make sure to read the sale agreement, which goes over the terms of the deed transfer, and review it with an attorney or broker before closing. If you’re married and applying for the loan together, make sure this is reflected in the paperwork—if there’s a mistake here, you’ll regret it when it comes time to file your taxes. Also, take note of whether the residence has had a home security system installed. Many home security providers require contracts before they provide monitoring services so you could be taking on this cost as well without realizing it. Reading all of the documents thoroughly will help you avoid unexpected snags as you settle into your new home. Pay Attention at the Inspection Some states require a home inspection before a closing can take place. Even if it’s not essential, though, it’s always a good idea for potential buyers to be aware of any issues. At this point, you’ll likely be anxious for the deal to go through so you may be tempted to brush off any red flags that the home inspector comes up with. Resist this urge. If the house has major structural issues—if the inspector thinks that it will require a new roof within the next few years, for example—consider whether you’ll be able to afford the repairs on top of your mortgage payment. If not, this may not be the right home for you. While the prospect of starting all over again can be frustrating, it’s better than saddling yourself with a pile of trouble you can’t afford. You’re bound to encounter many dips, curves, and obstacles on your road to first-time home ownership. The important thing to remember is that the reward at the end of the day will be worth it. You’ve earned this opportunity after finding yourself an amazing career and saving your salary for this big milestone in your life. If you’re well-informed and prepared for the investment, you’re already leagues ahead of many others. Best of luck! Black Homebuyers References: https://www.gatewayaccessrealty.com/home-buying-hacks-you-need-to-know https://www.bankrate.com/mortgage/lenders/florida/ About Author Leigh Langston editor See author's posts Share this:Click to share on Twitter (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Facebook (Opens in new window)MoreClick to email a link to a friend (Opens in new window)Click to print (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on WhatsApp (Opens in new window) Related News Black homebuyerbuying a homehome inspectionhow to get approved for a mortgageshop around for your mortagage
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