The thrill and excitement for future possibilities can often affect judgment and result in rash decisions. Buying a home is one of the largest investments you’ll ever make and it’s a done deal once you sign on the dotted line. Doing homework ahead of time can assist you in making the smartest home buying decision.
One of the best tips for a smooth real estate transaction is taking your time. When you’re new to the idea of being a homeowner, rushing into buying the first home with a “for sale” sign can lead to disaster. The first things to think about and decide on are, knowing what you want in a home, where you want to live and what your budget is.
Additional tips for first time home buyers, provided by an article in MSN Real Estate, include:
1. Use trustworthy real estate websites such as zillow.com and homegain.com for comparable sale home prices in your neighborhood.
2. Know what mortgage amount you can afford. A bank will most likely approve you for a large mortgage, but the amount you can afford doesn’t always include other monthly costs you have. Total all of what you pay out in a month and what’s left of your budget can account for your mortgage.
3. Figure out what you’ll have to pay in taxes and homeowners insurance. Learn the county or city tax for your desired location. Sometimes, mortgage payments will double after taxes and insurance fees.
4. Remember that at the time of signing the paperwork includes writing a check for closing costs, which equal a large sum of money to cover taxes, origination fees, title and insurance fees. This amount can range from a few thousands to tens of thousands. Make sure you can afford this first.
5. Contact a reputable real estate agent to get a grasp on the current market. An agent will be able to guide you to locations where you’ll get the most for your money.
6. Look at the big picture. A move-in ready home will cost you more up front, but the risk of repairs and construction won’t be a factor. Purchasing a fixer-upper can cost less initially, but down the line, you’ll have to spend money to renovate. Figure out which scenario fits you best.
If you are just beginning to think about buying a home for the first time, take time to sit down and decided what you must have in a home, what you can afford monthly, and where you want to live. For guidance, it always helps to have a real estate agent to help you in the home buying process.