First-time home buyers tend to dominate the U.S. real estate market, accounting for roughly half of all residential transaction, and that trend is likely to continue. That’s because interest rates are continuing to hover near all-time lows, home-price affordability is near all-time highs and a third factor is the continued support from Washington encouraging home ownership.
Still, with the prospect of making one of the largest investments you'll ever make in your life, you can easily become overwhelmed. That’s why it is important to have a plan.
Resources--Before starting out, educate yourself on the process. Attend a homebuyer seminar, meet with a Real Estate Professional and check out the myriad of real estate resources online. Among those helpful online resources is www.elliman.com, through which you can access millions of property listings and gain environmental reports, property profiles and value-range estimates for just about any residence in America.
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Affordability--By looking at your income and debt ratio, your real estate professional can help you calculate how much you can afford. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, homeowner association dues, utilities and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance, more commonly referred to as PMI.
Mortgage payment--Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you should get pre-qualified or pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when you finally bid on a house. If you don’t have a specific mortgage lender in mind, ask your real estate professional for a recommendation.
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Down payment--The down payment amount varies depending on the value of the home you choose and your mortgage lender. Your real estate professional will be able to explain the different options available to you.
Making offers--Don't feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you decide on a home to make a bid on, work with your real estate professional to understand the best way to proceed.
Above all, remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first home purchase is a rewarding experience.
If you decide the time is right for you, give me a call or email and we can discuss a plan to orientate you and help you understand the market.
We can visit some homes that interest you, stop in on a few Open Houses, or just sit and discuss your options and make a plan for a future visit.
I am in the office most weekends, or you can contact me about a firm appointment.
Tel: 631 298 6131
Email: egiordano@elliman.com
Check out my Corporate Web Site: www.elliman.com/egiordano
Check out my Blog: //northfork.patch.com/blogs/north-fork-realtor
