Tips On Home Maintenance For First Time Home Buyers

This Article On Home Maintenance For First Time Home Buyers was written by Gustan Cho NMLS 873293 

A home purchase is a life changing even for most American Families. A home purchase is most people’s single most largest investment in their life and anyone who has accomplished in becoming a homeowner, hands down they should be proud to have accomplished this goal. Not every person can qualify to be able to purchase a home. The mortgage process is extremely strict in having minimum requirements to qualify for a home loan. Here are the basic requirements to qualify for a mortgage loan:

  • Meet minimum credit score requirements of 580 FICO for FHA and 620 FICO for Conventional
  • No late payments on any of their credit obligations for past 12 months
  • Mandatory minimum waiting periods after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • No outstanding bad debt on government loans
  • No judgments or tax liens without a written payment agreement that has been seasoned for at least three months
  • Have stable full time employment and/or income source that is likely to continue for next three years
  • Part time income, bonus income, overtime income, self employed income needs to have been seasoned for at least two years and likelihood to continue for next three years
  • Meet the necessary debt to income ratios
  • Debts of spouse included on community property states
  • Late payments after bankruptcy and/or foreclosure generally not allowed

How Mortgage Lenders Qualify Borrowers

Mortgage lenders have their own way of qualifying borrowers and deciding whether or not they can afford their mortgage payments and that is by making sure that they meet the debt to income ratio requirements stated on the loan program they are applying for.

  • Lenders do not take home maintenance for first time home buyers into consideration when calculating debt to income ratios.
  • Debt to income ratios are calculated by taking the sum of the borrowers total minimum monthly payments including the proposed principal, interest, taxes, and insurance ( PITI ) and dividing it by the borrowers monthly income.
  • Once thing that lenders do not take into consideration are other monthly payments that the borrower may or may not have such as cable bills, internet bills, medical insurance, and most importantly, maintenance expenses every homeowner incurs when purchasing a new home.
  • As a renter, you did not have scavenger service, water bills, landscaping bills, snow shoveling bills, and other maintenance bills that can become quite costly.
  • Even if you do not hire a maintenance company or handyman and you do the work yourself, there are costs involved whether it is buying a lawn tractor, lawn mower, snow blower, tools, or other expensive lawn or yard maintenance equipment plus the cost of fuel, oil, and parts.

Maintenance Essentials For Every Homeowner

Every mortgage borrower needs to take home maintenance for first time home buyers into consideration when buying a particular home. A home on a larger lot will require more home maintenance for first time home buyers due to the lot size and cost of fuel when mowing the lawn. A home that sits on acreage will need a lawn tractor that can cost thousands of dollars to purchase. Every homeowner will need maintenance essentials for their new home and many homeowners are clueless on how much some of these tools and equipment will put a dent on their budget. As a homeowner, you will not have a landlord or landlord’s maintenance guy to call and either have to do the work yourself or hire a handyman or maintenance company that can become quite costly. Most home buyers learn how to do the basic repairs themselves through the many do it yourself guides and manuals out on the internet. However, even if you are your own handyman, you will still need the basic tools that you will need to have in your home to be able to do the repairs yourself.

Here are the basic tools that you will need as a homeowner and if you do not have the budget to purchase it all at once, you can get them piecemeal or go to your local garage sales or aftermarket stores to look for used tools and  equipment:’

  • Lawn mower and/or lawn tractor plus leaf and lawn bags
  • Rake
  • Garden hose
  • Trimmers, weed trimmers, snow shovel, regular shovel
  • Snow blower for winter plus packages of salt in inventory
  • Screwdrivers (both Phillips and flat head)
  • Pliers (needle nose and channel lock)
  • Flashlight and candles in the event of power outage
  • Generator in the event of power outage
  • Socket wrench set
  • Hammer
  • Basic nails, screws, electrical tape, masking tape, five gallon fuel tank and fuel for lawn mower, snow blower, trimmers, and oil
  • Jumper cables
  • Wall anchors
  • Stud sensor
  • Ladder
  • Work gloves
  • Smoke detectors, carbon monoxide detectors, radon detectors, and fire extinguishers are lifesaving items that should be present at all sections of the home

Rewards Of Home Ownership Versus Being A Renter

Is the cost of home maintenance for first time home buyers worth being a homeowner? 10 out 10 homeowners will tell you that the cost of home maintenance for first time home buyers is a very little price to pay in being a homeowner versus a renter .

Here are the pros and cons of being a homeowner versus a renter.

  • Security of not being asked that your lease is up if you are a renter and for you to find a new place to move.
  • Housing payment is the same year after year if you are a homeowner unless your property taxes and homeowners insurance increase. If you are a renter, a landlord can increase your rent by 10% or more or even ask you to leave.
  • The ability to do what you want to your property without having to ask your landlord for permission like to be able to paint your home a certain color.
  • Ability to have dogs and cats without asking your landlord for permission or having to come up with additional security deposit.
  • Having the ability to invite friends and family for extended stays or live with you without having to ask your landlord for permission and/or having to cough up additional security deposits.

If you are currently renting and see if you can qualify for a home loan and see how much your monthly mortgage payment will be as a homeowner versus what you are paying for rent currently, feel free to contact me at 262-716-8151. Text me for faster response or feel free to email me at gcho@gustancho.com. I am available 7 days a week, evenings, weekends, and holidays.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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