September 17, 2024
First-time home buyers looking for their first home and a participating lender to apply for an FHA mortgage loan may not know exactly what they are looking for in a new home at first.
As you embark on the home ownership journey, several issues will become more apparent. When planning for your first home loan and preparing your credit to borrow, remember these concerns.
Buying A First Home To Accommodate Future Needs
Couples looking at their first home should anticipate changes in family size, needs for a hobby room or a dedicated workspace, and room to grow with furniture and other possessions.
The one-bedroom house you look at today may be the home you grow out of tomorrow; make sure you anticipate your future needs when looking at designs and floor plans.
Borrowers who choose to have a house built for them using an FHA One-Time Close construction loan will have more say in this area than those who are house hunting for existing construction properties, but no matter what kind of home loan you need, thinking of the future is always a good thing.
Buy A First Home With Long-Term Plans
Some borrowers start their first-time house-buying journey without thinking about what they will do with the home later on. Do you need a starter home you will sell before the loan term ends?
Or do you want a home you can settle into and stay with for most or all of the mortgage term? Long-term planning in this area can be an important step, and it’s best to start thinking in such terms as early as possible.
Buying A Home In A Developing Area
Ever hear a horror story about someone who bought their first home in an up-and-coming area only to realize that development in the area has a new big box department store, gas station, or event center springing up nearby?
This is not a problem in all areas. Still, in certain suburbs, subdivisions, or new housing developments where such issues do loom, borrowers could find themselves in an area with unwanted light pollution, noise, or higher traffic levels than when they purchased the property.
It’s something to think carefully about. Ask your real estate agent questions about possible developments in the area.
Buying A First Home Other Than A Typical Suburban House
FHA mortgages can be approved for townhomes, condo units, multi-unit properties, and mobile homes.
If you have never considered buying a condo unit or mobile home, you may (depending on your needs) find that these alternatives suit some personal needs very well. Condo units, for example, are excellent for those who do not want to deal with the upkeep of front yards and related maintenance chores.
The nature of the property you purchase with an FHA mortgage may carry some unique requirements, but having the option of a condo, mobile home, manufactured home, etc., means greater flexibility in your house hunt.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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