Located on Mount Desert Island off the Maine coast, Bar Harbor is the definition of a picturesque natural landscape. Its coastal waters are known to have many yachts and lobster boats, representing a long maritime history. Bar Harbor is backdropped by lush, green mountains thanks to its position as the gateway to Acadia National Park, one of America's most visited national parks. This means residents get the best of both worlds, being able to spend time on the water kayaking one day and hiking nature trails the next.
With so much to offer potential buyers, it’s easy to see why anyone would be interested in buying a home in Bar Harbor, even a first-time homebuyer. Without the expertise of having purchased a home before, the process can seem daunting for many. Let’s take a look at the ways a first-time homebuyer in Bar Harbor can make homebuying easier on themself.
Work with an expert realtor
There’s a reason that 86% of buyers used a real estate agent when buying a home last year. Even the most seasoned homebuyer can use some help when purchasing a new home. There are always new rules and regulations to keep track of, a tall task even for someone who works in real estate. Experienced realtors keep up with those changes and have worked with many clients in the past, overcoming a wide variety of potential issues that could arise. Don’t be afraid to rely on their expertise to help ease or prevent any headaches along the way.
Weigh the options for down payments
While most internet searches will say that a 20% down payment is the industry standard, it isn’t necessarily the only option. By putting down 20%, buyers can avoid taking out private mortgage insurance and save money, but this might not be feasible for all buyers. Putting down such a large down payment may save a bit of money on the monthly payment, but it can put undue stress on a new homeowner's finances. Be sure to consult with a mortgage professional for information on what options are available and help decide what down payment amount is appropriate.
Don’t let property taxes come as a surprise
A sneaky cost of buying a home for many first-timers is property taxes. It can be especially tricky with different states and local governments charging different rates and having different dates when they’re due. For example, some municipalities collect taxes once a year, while others collect them twice or more. Not paying property taxes on time could lead to incurring late fees and additional interest or even leading to a lien being placed on the home. Be sure to check out the Bar Harbor tax assessor website for information on how much and when property taxes are due.
Explore available loans
No financial situation is the same when buying a home, which is true of the loan options available to buyers. A wide variety of loans are available based on multiple factors, but there are a few main types that most agree upon. The first type of loan is a conventional mortgage, the most common type. Buyers can put down as little as 3% with these loans, although the requirements to qualify will be stiffer in many instances. Fixed-rate mortgages lock in the interest rate for the entire length of the loan, while adjustable-rate mortgages usually have a low introductory rate that is adjusted after a certain period, either up or down, depending on the market.
There are also mortgages available that are backed up by the government. The Federal Housing Administration, the Department of Veterans Affairs, and the U.S. Department of Agriculture all offer government-backed loans. These programs allow a wider range of borrowers to purchase homes that might not be able to secure loans from other mortgage lenders.
Homebuyer assistance programs are available
First-time homebuyers have an advantage over their more experienced counterparts: down payment assistance programs. Many organizations, including the U.S. Department of Housing and Urban Development, offer help in many ways to buyers who can’t afford a down payment. This help comes in many forms, such as grants, forgivable or deferred loans, and more. Each program awards different amounts and types of assistance, usually requiring an application and meeting certain criteria. And even if a buyer has owned a home before, many organizations will still consider them first-time homebuyers if they haven’t owned a home in the last three years.
Take a homebuyer education course
Learning never really ends, and this is especially true of buying a home for the first time. Luckily, there are first-time homebuyers classes available that walk buyers through the process. Many mortgage lenders highly recommend these classes; some even require them as part of the loan process. Classes cover such topics as budgeting, assessing credit history, finding programs aimed at helping first-time homebuyers, and much more. A mortgage professional or realtor should be able to assist in finding local classes being offered.
Discover more tips for becoming a Bar Harbor homeowner
While these tips will help get a first-time homebuyer off on the right foot, not all the information and advice is available. Working with an experienced realtor when buying a home for the first time can help the process go much more smoothly and quickly. That’s why finding the right realtor is an important step in finding the right home in the Bar Harbor real estate market.
Raised in Bar Harbor, Steven Shelton has the local experience needed to help first-time homebuyers on their journey. With over $250 million worth of homes sold in the past 10 years, Steven has proven to be the premier realtor for Bar Harbor and the surrounding areas. First-time and experienced homebuyers can contact Steven and work with a realtor dedicated to bringing buyers and sellers together.
