So my lease for my apartment is up toward the end of this year, and now that I can work remote, I’m thinking of moving somewhere less expensive and finally buying a home. Can anyone with experience give me advice on the process or resources I can use? Not only am I a total noob, but I don’t talk to my family and my friends aren’t homeowners either, so I’m not sure where to start. Googling presents me with so much info that I’m a bit overwhelmed.
As someone who’s been through this 3 times, this all correct but I’ll add a few caveats:
Buying a home can be a daunting, overwhelming, and frustrating experience, especially if you’re looking at a quick closing timeframe. Just remember: your real estate agent is there to help you every step of the way and it’s in their best interest to have your best interest at heart. Rely on them and their guidance and it’ll make the whole experience less stressful.
Just FYI, OP: The fee for the PMI is usually based on the difference between 20% and what you put down. I wanted to save some money upfront for some upgrades, so the bank recalculated my fees with 15% vs 20% down. The PMI on a 15% down payment came out to $8/month for the first 12 months and dropped off after that.
That saved me a few thousand upfront which I was able to use to pay for my landscaping and some other projects.
Also, don’t be afraid to ask stupid questions to your mortgage broker :) They’re usually very helpful, and mine actually suggested that tip to me. It was also less than the extra interest I would have incurred if I’d increased the amount of my loan by that much.
Ahhh, that makes sense. I haven’t had to deal with PMI since I bought my first house in 2009, and all I could remember was something about 20% down. Thanks for clarification!