First Time Home Buyers: How to Make a Wise Buy
With all of the short sales and bank owned properties on the market, now is a great time for first time home buyers to make their move. Buying your first home is a big step, however, and one that will impact your financial future. To determine if you are ready to buy your first home follow these steps:
How to Make a Good Buying Decision:
1. Establish a Realistic Budget: Make sure to take into account mortgage insurance, homeowner’s insurance, taxes and repairs.
2. Buy What You Need: Make a list of your wants and needs. Try to stick to what you NEED while still including your wants. Remember that a bigger house isn’t always better.
3. Plan For Growth: Plan for growth to ensure that you will be happy in your new home for years to come.
4. Understand Appreciation: The future value of your home will likely impact your ability to move up later in life.
5. Work with a Local Agent: Find an agent that is familiar with the area you are looking in.
6. Get to Know the Neighborhood: Make sure the schools, amenities and other important factors meet your expectations.
7. Get a Home Inspection: An independent inspection will help ensure that you aren’t confronted with expensive repairs or hidden defects later down the road.
8. Obtain Insurance Quotes Prior to Making an Offer: Insurance rates vary with each and every home. Things that are considered are the age of the home, prior claims, the neighborhood and other factors. Make sure you know how much it will cost to obtain insurance for the property you are interested in.
9. Verify What Your Tax Rate Will Be: It is very possible that you may be faced with a new tax rate after you purchase the home. Plan ahead and find out what your tax rate will be.
10. Get Prequalified with a Lender: It is essential to speak to a lender to find out how much you will be able to borrow and at what rate. Knowing your approximate monthly payment is critical in determining if a home is within your budget.
