Important Information for First-Time Home Buyers

As a first-time home buyer, the thought of buying a home is both exciting and uneasy.  We have all heard the statement: A house is the biggest financial investment most people make in their lives.  There are a few things you need to consider before beginning the home search.  These tips can help speed up the process by making your home search more accurate and efficient.

1)      What can you actually afford?

Remember, what a mortgage lender is willing to lend you does not always mean you can afford that loan.  Mortgage lenders, when calculating what they would be willing to lend, factor in monthly income, job security, current debt, etc.  There are other financial factors that you must pay closely attention to when deciding your budget- insurance, property taxes, maintaining your new home, the type of lifestyle you live.  In simple terms, just because a lender is willing to give you $200,000 does not mean you can afford a $200,000 house. 

2)     Wants and Needs in your home

Do you have two kids that each needs their own bedroom?  Do you need a sizeable, updated kitchen because you love to cook?   Do you own dogs that you wish could run free in a fenced-in back yard?  These are the types of things that may factor into your decision making.  Everybody’s needs and wants are different.  Some people want a large yard for their kids to play in while others want a small yard that needs less maintaining.  There may be a specific neighborhood that you would like to live in.  After you list out all of the possible features, make sure you separate the ones you need and the ones you just want.  This will go a long way in determining which property is right for you.

3)     What type of property are you looking for?

There are all different types of properties- condos, townhomes, single-family homes, twin homes, etc.  What suits you the best?  Each type has its own positives and negatives.  With condos, you only own the inside walls of your unit but do not have to physically maintain the building or land, as your association fee normally covers that.  Owning a single-family home means owning everything within the properties limits, but also means paying for every single
repair and update.  Weigh the pros and cons of each type before making your decision.

The process of buying a home can be intimidating, enduring and frustrating.  Instead of running around looking at properties that you cannot afford, or seeing homes that do not fit your needs and wants, take the time to narrow down your ideal property beforehand.  It will make the process operate much smoother. 

For more information on purchasing a home, or to have your questions answered, email me at daywaltjesse@yahoo.com.