Five pieces of advice for first time homebuyers (1:44)

Video Summary: 

We asked homeowners to share what they wish they’d known before buying their first home. Hear what they have to say about unexpected costs, managing spending and setting aside money for repairs.

[MUSIC PLAYING]
Narrator:
We brought this red chair around Connecticut and asked people, what do you wish you'd known before buying your first home?

Male:
Yeah, I think the first couple of times I bought a house, I was surprised at how many ancillary costs there are that drive up the price-- taxes and fees.

Female:
I did my research about a year prior. And I learned about interest rates and different options, whether it's FHA or conventional loans, and how to save up, what my credit score is, what your credit score should be if you're looking for a low interest loan. And I found out about different housing programs in the area.

[Title Card]
To estimate how much house you can afford, your monthly mortgage payment should be less than 28% of your gross monthly income.

Source: Investopedia.com

Female:
Have a really intense home inspection done, because things can be hidden that a normal inspector would not really dive into. Or have a GC come and check things out.

[Title Card]
That’s Great advice!

Female:
Budget. Cut your spending with certain things. Eliminate certain things until you go through that process and close and are in your home.

[Title Card]
Try to avoid big purchases that might impact your credit (like a new car) while you’re waiting to close on your new home.

Source: Investopedia.com

Male:
I'd tell them they should have a margin of safety on their cash budget, because there's always something you have to repair or replace or fix-- both when you're going out, somebody always wants something fixed, or when you're coming in, there's always something you want to do when you get there.
[Title Card]
You should save at least 1-2% of your home’s value per year for upgrades and regular maintenance.

Source: Nerdwallet.com

[Title Card]
[Liberty Bank Logo]
Find other helpful videos and tips at Liberty Bank’s Learning Center.
To learn more, visit liberty-bank.com/learn

DISCLOSURE

This article, tool or quiz above is for informational and educational purposes, is not an advertisement of Liberty Bank, is not for product promotion, do not constitute investment or legal advice, are estimates only, and may contain general information or examples regarding non-deposit products. Investments, stocks, mutual funds, securities, annuities and insurance products are not bank deposits; are subject to investment risks, including the possible loss of the principal amount invested; may lose value; are not insured by the FDIC; are not insured by any Federal Government Agency; and are not obligations of, nor guaranteed by Liberty Bank.

Liberty Bank makes no warranties or representations as to the accuracy, correctness, reliability or otherwise with respect to information set forth in the article, tool or quiz above and assumes no liability or responsibility for any omissions or errors in the content listed above.

e