There comes a time for every young adult when the time is right to buy their first home. If that time has arrived for you it is important that you get a grip on some of the important details related to buying a home. With that in mind we have put together this 7 step list.
1. The first time home buyer needs to narrow down the locations that they feel comfortable living in. There are so many neighborhoods that it would take literally forever to look at and find a suitable home if too many areas are on the final list of places to search for a home. However it is essential that the vital questions like school systems, crime rate, assess ability to highways and amenities are included in the narrowing of the list of desirable areas to look at houses in.
2. It pays in time, expense and emotional turmoil to know in advance what you want, where you want it and more importantly where it is available at a price that will fit into your finances. So before you rush out to look, look online at what is available that meets your needs and size requirements at a price that fits your pocket book. How many bedrooms do you need, how many baths, do you need a fenced yard for a pet. Factor in all your essentials and then look to see what neighbors offer these goodies in your price range. Check out online resources that offer neighborhood information, talk to a Realtor, find free access to the multiple listing service for your area. Use any and every resource available to you to narrow down your search to neighborhoods that offer what you want at a price that you can afford
3. There is nothing worst than spending time looking at homes and finding a dream home and then finding out that the bank will not lend you that type of money. The size of home loan that you will qualify for is very much in line with your income and your expenses. With this in mind it is relatively to get a guesstimate of what you can borrow to buy a home by using one of the many mortgage calculators available online
4. When you are preparing your budget and looking at your finances to understand just how you are going to be able to afford a particular home that fits your requirements remember to factor in home owner insurance and real estate taxes into the equation. You can find out online or at the assessors what your taxes will be and many brokers will be happy to give you a homeowner insurance quote. For the perspective condo purchaser there is also the condo fee to consider. And don’t forget the incidentals like water charges, heating, maintenance and repairs.
5. After you have put a home under agreement and had your mortgage approved the day will finally come for the closing. A point some first time home buyers overlook is that there can be considerable closing costs associated with buying a home. There are items like title insurance, settlement fees and originating fees (points), there are also prepaid items to be considered depending on the time of the month that the closing is scheduled like interest, taxes and insurance. Once again there are many online resources offering closing costs calculators.
6. The interest rate that you will be charged on your home loan will be severely affected by your credit score. An extra 1% interest could cost you hundreds of dollars extra per month. Therefore it is really advisable that you check out your credit before you even consider looking at homes. Credit score is adversely affected by high credit card balances, unpaid bills and late payments. It is relatively easy to increase your credit score substantially by paying down high credit card balances, negotiating and paying off old forgotten utility and cell phone bills and explaining late payments and asking/begging/pleading with the creditor to change the information supplied to the credit bureau. A free credit report is available at annualcreditreport dot com however the credit score will cost extra.
7. Be honest with your self, look at your income, your budget and your lifestyle. Are you ready to commit to home ownership? Are you ready to sacrifice the freedom that you now have to own a home? These are really vital questions that you need to answer.
If you look at the above 7 points and ask yourself the questions that they bring up, you will make better decisions in your quest to become a first time home owner.
Marshfield Homes for Sale offers full access to the MLS listings for all homes for sale in Marshfield including bank owned homes and short sales.
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