Tips For First Time Home Buyers

home-buyers

When you have decided it’s time to purchase your first home there are many things to consider.

Although it will be hard you need to base your decision on facts and not make a purchase based on emotions.

First you need to determine how much you can realistically afford to spend for a home. If you are currently renting and are able to make the rent each month on time and without any problems that may be a starting figure for you.

Keep in mind that when you rent you need to come up with only that one amount each month. You may have a renters insurance premium in addition to your rent, but that is the total amount due.

When you purchase a home, in addition to the monthly mortgage payment, you need to budget for property taxes, home owners insurance and possible home owner association fees. A $1,000 mortgage payment may turn into a $1,600 house payment.

If you put less than a 20% down payment for a home you may have to pay private mortgage insurance too.

Additionally, you need to put money aside to cover any expenses which will arise as a part of the upkeep of a home. Unlike an apartment, if an appliance breaks it is up to you as the home owner to either have it repaired or replaced.

Before you apply for a mortgage loan obtain a copy of your credit report so you will have an idea of whether or not you can qualify for a mortgage. Be sure to correct any errors you may find on the report. Talk with a lender and get pre-approved for a loan.

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Make a list of all the things you consider must haves in a home and some things you would like a home to include. When you look at a house take your list with you and check off the features on your list that are in the house you are viewing.

You want to consider that in the future you probably will want to sell this first home. Therefore, you want a home in a desirable location that will appeal to others. Buyers with children will not want to live on a street with high traffic and they will want to live near a good school.

It is wise to have contingency clauses in your contract for purchase of a home. You need to be able to cancel the contract if for some reason you are not able to qualify for financing. You also want to be able to cancel the contract if a home inspection discovers problems you do not want to deal with in a newly purchased home.

Before you purchase a home you really should have a home inspection done by a qualified inspector to protect yourself from potential problems. The home you are considering may be staged to appear perfect, but a home inspector can uncover problems not visible at first glance.

If the area has a home owners association be sure to read that contract too.

Be sure to read any contract before you sign it. If you do not understand the language in the mortgage contract ask that it be explained to you.

Unless you are going to own the view you like from the property you are planning to buy you cannot be sure that view will stay the same in the future.

Determine how much you can afford to pay each month for a home and stay within that price range. Do not even look at houses priced well above your price point as you may be tempted to overspend and take on more mortgage debt that you can really afford.

Base your figures on your current income and not on the possible potential of better positions, promotions or raises. You may not realize additional cash flow so you need to base your ability to handle expenses based on your current income.

Buying your first house is a very exciting time. You want your purchase to be a happy experience. You do not want to be constantly worrying because you purchased property more expensive than you can actually afford or a house that needs extensive costly repairs.