Top 5 Questions for First-Time Home Buyers

Buying a home is one of the largest debts you will undertake and not being prepared in the beginning will be to your own demise. There are many things that surround the purchase of a first home and going in ready to tackle the process works to your advantage.

Here are the top five tips for staying in the know about your first home:

Secure Financing
While it is exciting to start working with a realtor and visiting new homes, your first priority should be money. Have your budget on hand and decide how much you can afford to pay. Contact a loan officer and discuss your financial situation. Once you have been preapproved for an amount, you’ll be able to shop more realistically and save yourself a lot of time and hassle. Experts note that a good ratio of house payments in relationship to your income is one-fourth, meaning that no more than ¼ of your income should be dedicated to the mortgage, taxes, and insurance. You may be pre-approved for more than that but it is unreasonable to go outside of your budget.

Understand the Costs
Obviously your mortgage payment is a big consideration in the process but too many times new homeowners forget the rest of the expense of owning a home. There are down payments and closing costs to consider right away. Plus, you’ll need to factor in the utilities, home maintenance fee, and any potential repairs necessary. Be sure to understand how much insurance, taxes, homeowner association fees, and the like will be added on for your new home.

Check Out the Neighborhood
You may find the perfect house in a not so perfect place but because you think you are in love, you may neglect to consider the big picture. Real estate experts suggest sitting down and making a list of what you really want in a home and a neighborhood. There are many factors to consider such as proximity to the places you go most often, the commute to work, the distance and transportation to the local schools, and how the other neighbors relate. These are very important because committing to live in the new area means facing these issues daily.

Consider Your Lifestyle
While many people do buy a ‘starter’ home when just starting out, it is still a big commitment. If the house only has 2 bedrooms, you really need to consider how many kids you plan to have. That is just one factor in the equation. You’ll need to think about where you see yourself in a few years down the line. Some folks may find they are better off renting in the beginning so they can maintain flexibility for careers and such. But if you think you are ready to settle down, plan ahead for the future and don’t just live in the present.

Are You Ready?
A home is not only a huge financial responsibility it also takes a lot of work. Be sure you understand what it will take to keep things running smoothly. If you have a big yard, are your prepared to cut so much grass? It may sound like a simple question but if you are too quickly overwhelmed by the daily tasks of maintaining a home, you might want to wait. If you are ready to devote your time and money to the investment, call up a realtor.