Greater Brazos Valley Builder's Association Fall 2018 Parade of Homes™ Guide | Page 8

PLANNING AHEAD
Taking the Guesswork Out of Financing Your First Home
By THE NATIONAL ASSOCIATION OF HOME BUILDERS
Homeownership rates
among young adults
continues to grow as
millennials begin to
return to the housing
market.
In fact, the number of millennials buying
homes grew the most of any age group
in 2017, according to the Census Bureau.
Since millenials are mostly first-time
home buyers, they are also facing the
abundant amount of paperwork involved
8
INSITE October 2018
in the home financing process.
Fortunately, with advanced preparation
and a personalized to-do list, new home
buyers can easily stay on top of the
financing process. You need to decide how
much to spend on your home and which
type of mortgage will work best for you, as
well as understand the settlement process.
Be Realistic About
What You Can Afford
Figure out what you can comfortably
pay on a monthly basis. Write down all
your monthly expenses including loan
payments, utilities, insurance, and credit
cards, and don’t forget food, clothing, and
entertainment expenditures.
When determining the monthly
payment within your reach, remember
that in addition to the monthly
principal and interest, you will also
be paying into escrows for property
taxes, hazard insurance, and possibly
mortgage insurance or a home owners
or condominium association assessment.
Many real estate-focused websites have
mortgage calculators that are a great way
to figure out what your monthly payments
would be based on current interest rates
and down payment amounts.
Parade of Homes™ Guide 2018