Buying a house for the first time is one of the most rewarding financial moves you’ll make in your life. Every day you come back to a warm home and find fulfillment in the fact that it’s yours. You don’t have to answer to a landlord. You got the place through the sweat of your own brow, so you feel pride every time you look at it. And it’s a sign that you’re moving up in life, finally settling down and getting into a good, stable economic situation. There are a lot of reasons to buy a home, whether for comfort or convenience, but remember that it isn’t cheap. Even if you have a lot of money, you don’t want to waste it—or create undue stress—by rushing into a hasty purchase decision. Here are the top things you need to consider when buying your first home: Write out a PlanYou’ll notice that drafting written plans comes up a lot on this website. And it definitely applies here. Before you start looking at options, you need to make sure you know what you want.
When you write out your plan, make sure to specify between wants and needs. Doing so can help you avoid losing money on something that’s nice but not essential. Hire a Professional RealtorTre Pryor makes a good case in favor of hiring a realtor. It’s true that you can perform the search on your own, but you can’t beat the expertise of someone who’s fully immersed in the industry. Remember, everyone out there trying to make a buck, often at your expense. How do you counter it? By enlisting the help of someone who makes his bucks by helping you, not harming you. Plus, part of what you pay for with a realtor is his network. He know where to look and who to talk to in order to find what you’re looking for. He can recommend a quality lending company that fits your needs. Get your Credit in ShapeAlthough you really should be doing this prior to prepping for a home purchase, this is as good a time as any to buckle down and get your credit in order. Remember, credit standards are pretty high. If you don’t have the best credit, you can find it difficult to get a mortgage loan. And you can get slapped with some hefty interest rates. Get a free credit report and inspect it carefully. See if you can pay off pending debts and tie any other loose ends. Assess your Income and SpendingMake sure you truly have enough money to afford your new home. Remember, we’re not just talking about the mortgage. You have all kinds of maintenance to do for the rest of your relationship with the home. If you need to furnish your new place, add that to the mix. Make sure that mortgage payments won’t consume too big a portion of your earnings. A good rule of thumb is to stay within 28% of your income. Do your Own Research on a Possible PropertyIf you’ve found a place that looks good, do some research on your own. Find out what skeletons may lie lurking beneath the surface. If there’s anything the owners aren’t telling you, there are ways to find out. Get a copy of the building permit, request the building abstract, look through newspaper archives, talk to neighbors. You want to get a sense that the house is in good shape—that nothing fishy is going on. Also, make sure it’s in a good area. Research possible sex offenders in the area. The Fearless Homebuyer blog suggests way to figure out crime stats for your neighborhood. Insure your Possessions You want to secure yourself and your property in case of any disaster. Once you’ve gotten your home, take out a good title insurance policy.
That’s a lot to take into account, but following these tips can improve your home ownership experience by helping you choose a good home at a good price.
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AuthorRyan Johnson loves to write while watching baseball. If you like his blog posts, please share them on social media. |