Buying a home can be a challenging, sometimes grueling process even for those with a lot of experience in or expert knowledge of the real estate market, let alone first-time homebuyers.
To help you demystify the process and get the most out of your new home purchase, we’ll examine what you’ll need to consider before you buy, what you can expect from the buying process itself, and some handy tips to make life easier after you close the deal on your first home.
Considerations Before You Buy
Before you do any serious shopping of the homes for sale in your favorite neighborhoods, the first thing you’ll need to determine is what your long-term goals are and then how home ownership fits in with those plans. Are you wanting simply to transform all those “wasted” rent payments into mortgage payments that actually give you something tangible in return for your hard-earned money? Or are you looking at home ownership as one way to assert your independence and financial success? Whatever your personal reason is for buying a home, narrowing down your big-picture home ownership goals will point you in the right direction.
Match Your Home to Your Needs
Residential real estate covers a relatively broad spectrum of housing options, including traditional single-family homes, condos and townhouses, and multi-family structures. Each option has its pros and cons, depending on your home ownership goals. It might be helpful to make a list of all of the features important to you and then prioritize them. Some items to consider putting on your list include everything from basic desires, like neighborhood and size of the home, to relatively smaller details, like bathroom layout and the kitchen’s color scheme.
Set Realistic Mortgage Expectations
It is vital to your long-term happiness as a homeowner to get an idea of how much a lender will actually be willing to give you to purchase your first home. You may think you can afford a $300,000 home, but lenders may think you’re only good for $200,000 depending on factors like how much other debt you have, your monthly income and how long you’ve been at your current job.
How much home can you actually afford?
On the other hand, sometimes a bank will give you a loan for more house than you really want to pay for. Just like with the purchase of a new car, you’ll want to look at the house’s total cost, not just the monthly payment. Of course, looking at the monthly payment is also important, along with how much down payment you can afford, how high the property taxes are in your chosen neighborhood, how much insurance will cost, how much you anticipate spending to maintain or improve the house, and how much your closing costs will be.
A real estate agent will help you locate homes that meet your needs and are in your price range, then meet with you to view those homes. Once you’ve chosen a home to buy, these professionals can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. A good real estate agent’s expertise can protect you from any pitfalls you might encounter during the process.
Buying a home can be a challenging, sometimes grueling process even for those with a lot of experience in or expert knowledge of the real estate market, let alone first-time homebuyers.
Bad Real Estate Deal Image
To help you demystify the process and get the most out of your new home purchase, we’ll examine what you’ll need to consider before you buy, what you can expect from the buying process itself, and some handy tips to make life easier after you close the deal on your first home.

Considerations Before You Buy

Before you do any serious shopping of homes for sale in your favorite neighborhoods, the first thing you’ll need to determine is what your long-term goals are and then how home ownership fits in with those plans. Are you wanting simply to transform all those “wasted” rent payments into mortgage payments that actually give you something tangible in return for your hard-earned money? Or are you looking at home ownership as one way to assert your independence and financial success? Whatever your personal reason is for buying a home, narrowing down your big-picture home ownership goals will point you in the right direction.

Match Your Home to Your Needs

Residential real estate covers a relatively broad spectrum of housing options, including traditional single-family homes, condos and townhouses, and multi-family structures. Each option has its pros and cons, depending on your home ownership goals. It might be helpful to make a list of all of the features important to you and then prioritize them. Some items to consider putting on your list include basic desires, like the neighborhood and size of the home, and relatively smaller details, like bathroom layout and the kitchen’s color scheme.

Set Realistic Mortgage Expectations

It is vital to your long-term happiness as a homeowner to get an idea of how much a lender will actually be willing to give you to purchase your first home. You may think you can afford a $300,000 home, but lenders may think you’re only good for $200,000, depending on a wide range of factors, such as your current credit score, monthly income and employment status. Other common determining factors to be aware of include the amount of down payment you can reasonably afford, size of the property taxes in your chosen neighborhood, cost of your homeowner’s insurance, realistic estimate of immediate maintenance or improvement costs and finally, the amount you expect to pay in closing costs.

Get Expert Help

A real estate agent will help you locate homes that meet your needs and are in your price range, then meet with you to view those homes. Once you’ve chosen a home to buy, these professionals can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. A good real estate agent’s expertise can protect you from any pitfalls you might encounter during the process.

Tags: , , , , ,

This is filed under Home Buying.


     Twitter It!