7 First Time Home Buyer Tips
Buying a first home may be the right thing to do financially especially if you have been renting for a long time. For most people their prime investment vehicle is their home and the equity that they build up in it over the years. But, just because you have gotten tired of paying rent and getting nothing back in return doesn’t mean that you should just rush out and start making offers on homes. We have made up a list lf 7 sensible suggestions for the potential first time home buyer to consider before diving into the housing market.
1. It is imperative that you know what you want and even more important that you know where you want it. With this in mind the first time home buyer should start off their house hunt by listing neighborhoods that they feel comfortable living in and then narrow it down to a few that they will look at homes in. Things like school systems for those intent on starting a family should factor strongly into the decision making. Also crime rates and the commute to work should be considered when narrowing down the list of potential neighborhoods.
2. It pays in time, expense and emotional turmoil to know in advance what you want, where you want it and more importantly where it is available at a price that will fit into your finances. So before you rush out to look, look online at what is available that meets your needs and size requirements at a price that fits your pocket book. How many bedrooms do you need, how many baths, do you need a fenced yard for a pet. Factor in all your essentials and then look to see what neighbors offer these goodies in your price range. Check out online resources that offer neighborhood information, talk to a Realtor, find free access to the multiple listing service for your area. Use any and every resource available to you to narrow down your search to neighborhoods that offer what you want at a price that you can afford
3. Don’t make the mistake of underestimating or worst still overestimating how much home you can afford. The last thing you need to do is spend months looking at homes and falling in love with a house only to find that it is way out of your price range when you apply for a home loan. There are many online mortgage calculators which will give you a reliable estimate of how much mortgage money you can expect to qualify for with your current income and expenses.
4. When you are preparing your budget and looking at your finances to understand just how you are going to be able to afford a particular home that fits your requirements remember to factor in home owner insurance and real estate taxes into the equation. You can find out online or at the assessors what your taxes will be and many brokers will be happy to give you a homeowner insurance quote. For the perspective condo purchaser there is also the condo fee to consider. And don’t forget the incidentals like water charges, heating, maintenance and repairs.
5. Closing costs can be considerable depending on the type of mortgage you take out and the time of month you close at. The harsh reality of a real estate closing is that the buyer will be required to bring a bank check to the closing to cover points (a point is 1%of the mortgage amount), title insurance, state taxes and other settlement fees. Depending on the date of the closing prepaid insurance and taxes will also have to be paid
6. Check out your credit score to ensure that you will not be penalized with a high interest rate because of some small unpaid bill or some explainable error in your credit file. You can get a free copy of your credit report from each of the three major credit reporting agencies at annual credit report dot com. This service will not provide you with a credit score however they will give you your fico score for an extra fee.
7. Be honest with your self, look at your income, your budget and your lifestyle. Are you ready to commit to home ownership? Are you ready to sacrifice the freedom that you now have to own a home? These are really vital questions that you need to answer.
If you look at the above 7 points and ask yourself the questions that they bring up, you will make better decisions in your quest to become a first time home owner.
Find bargain Marshfield Homes for Sale and get unlimited access to the MLS listings where you can browse all homes for sale in Marshfield including foreclosures and bank owned homes.. This article, 7 First Time Home Buyer Tips has free reprint rights.
