FIRST TIME HOMEBUYER TIPS

If you are a first-time homebuyer, the challenge of buying a home for the first time can seem so daunting that it's tempting to either just go with the first house that falls in your price range or continue to rent.

If you are looking to purchase your first home don’t be discouraged but do be informed, educated and prepared for all the aspects necessary to become a homeowner. The opportunity to achieve the dream of homeownership while may seem stressful it can be an exhilarating accomplishment and truly a wonderful time in your life.

So, to give a little help here are key considerations before you buy:

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. Narrowing down your big-picture homeownership goals will point you in the right direction. Here are five questions to ask yourself:

1. What type of home best suits your needs?

You have several options when purchasing a residential property: a traditional single-family home, a townhouse, a condo, a co-operative or a multi-family building with two to four units. Each option has its pros and cons, depending on your homeownership goals, so you need to decide which type of property will help you reach those goals.

2. What specific features will your ideal home have?

While it's good to retain some flexibility in this list, you're making perhaps the biggest purchase of your life, and you deserve to have that purchase fit both your needs and wants as closely as possible along with the meeting your budget. Your list should include basic desires, like neighborhood and size, all the way down to smaller details like bathroom layout and a kitchen that comes with trustworthy appliances.

3. How much mortgage do you qualify for?

Before you start shopping, it's important to get an idea of how much a lender will be willing to give you to purchase your first home. Realtors and the sellers of homes generally require that you be pre-approved for your loan before they will accept any offer you make on a purchase. So, getting with the right mortgage professional and getting that pre-approval is a first step before you start the house hunting with your realtor.

Sometimes a bank will approve you for a loan for more house than you really want to pay. 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 homeowners insurance will cost, how much you anticipate spending to maintain or improve the house, and how much are closing costs. An experienced mortgage professional can provide you with estimates and guidance, so you make the best decision for you.

4. Who will help you find a home and guide you through the purchase?

I cannot stress this enough and how important having a real estate agent help you is so critical. As a buyer you get the privilege of their expertise at no cost to you because the seller pays all real estate commissions unless a different agreement is reached in the course of negotiation but that is an extremely rare. 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, and completing paperwork. A good real estate agent's expertise can protect you from any pitfalls you might encounter during the process and keep things on track with all the aspects of your purchase agreement.

These are key considerations as you start your adventure into homeownership. Having the right professionals to assist you is key and helps relieve stress for you. For more information about mortgages, homebuying or other financial questions please feel free to reach out to me at [email protected]