It's Shark Week ( #SharkWeek ) on Discovery. I've been enthralled. I always wanted to be an ocean explorer. Growing up, Jaques Cousteau was a hero to me. I wanted to live on the open ocean and discover new species. But enough about me...this is about you becoming a first time home buyer! Watching Shark Week got me thinking - getting in the water with the ocean's top predator is a lot like becoming a first time home buyer.
- Some people will call you crazy, but it's worth it. Especially in today's market, many people will say real estate is no longer the investment it once was. While that's true short-term, it's simply not the case overall. In fact, with home prices low and interest rates still at historic lows, it's a great time to get into the market. After all a home is long-term, not a quick-make-a-buck scheme.
- A lot can go wrong, and some of it probably will. Getting in the water with sharks, even in a tested cage, can be dangerous. A lot can go wrong. It can be the same in becoming a first time home buyer. Deals fall through, rates go up before you buy, an inspection comes back and there's work to do... But even when things go wrong, there are ways to deal with it. If an FHA inspection comes back with work needed, there's an option for you: the FHA 203k. This loan program allows you to buy the house as-is, and make the repairs after you close. You have options, that's the good news!
- Preparation can save you a lot of pain. Reading up on the mortgage and home buying process can make you a powerful buyer. Preparing for the things that can go wrong will ensure that you're ready when something doesn't line up with your plans.
- Having an expert on hand can be priceless. A lot of the preparation and problem solving can be handled by a mortgage adviser or mortgage consultant. Just like having a diving instructor watching out for you, your mortgage consultant should help keep you out of harm's way.
- Many people know very little about mortgages OR sharks. The mortgage process can seem daunting to you. After all, most people will only have a couple of mortgages in their lives, and we all see the news about foreclosures and mortgage scams. Educating yourself will help make the process less scary.
Here's the beginning of your education on mortgages: download a free eBook, "The Get Mortgage Ready Kit." It's full of information like real estate terms, credit & how it affects your interest rate and how interest rates work.
What do you think? Is buying that first home anything like swimming with sharks? Leave us your thoughts in the comments!
(Shark Week photo: ShareTV)