Helpful Home Tips &
Mortgage Advice from Experts

Buying your first house is an exciting time. It’s also a time filled with surprises for many people.
Here are five surprising things first time home buyers might encounter:

1. Your mortgage will probably be sold.

It’s pretty much guaranteed that your mortgage will be sold at least once. Mortgage brokers sell mortgages to make money as well as free up capital needed to continue giving loans to people. When your mortgage gets sold, don’t panic—just follow the lender’s directions about where to send your new payment. That’s the only thing that’ll affect you, anyway.

2. You suddenly have more bills—a lot more bills.

As a renter, your landlord was probably covering some of the bills. First time home buyers may be surprised to see that their mailboxes are suddenly full of bills they’ve never had to pay before, like garbage collection, sewer bills, and homeowner association fees, to name a few.

3. A fixed rate loan doesn’t mean your payment will stay the same.

With a fixed rate loans from NLC Loans, your rate is locked in for the life of the loan (or until you refinance guide). However, this doesn’t mean your payment will stay the same–something first time home buyers rarely anticipate. Your monthly payment also includes an escrow payment. Real estate taxes and insurance premiums are held in escrow, and they change occasionally. As a result, you may see your payment raise or drop.

4. You’ll save a lot of money on your taxes.

In addition to the pride that comes with buying your first home, some of the bigger benefits of being a first-time homeowner come from tax breaks. As a homeowner, you can deduct mortgage interest, property tax, and closing costs if you’re a first time homeowner.

5. Your home’s value depends on a lot of things.
Keeping your home in immaculate shape or outfitting it with the latest gadgets doesn’t necessarily increase the home’s value. Whether your home will appreciate or drop in value depends on factors you may not have realized. If your home is in one of the best school districts in the state, your property values will likely soar. If your city decides to put a sewage treatment plant across from your neighborhood, don’t be surprised when property values tank.

As a first-time home buyer and homeowner, there are bound to be a few surprises that come your way. Leave a little room in your budget to be prepared, and you’ll be able to handle just about any surprise that comes your way.