We've talked many times in this space about the overall process of buying a home. Summing up the process can give our readers a sense of comfort, but it doesn't mitigate the fact that 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. We know that! So this time, we wanted to dig a little deeper, to help you demystify the process from the very beginning and get the most out of the purchase.
The first thing you'll want to determine is your long-term goal. Look at the overall picture. Then look at how home ownership fits in with those plans. Some people are simply looking to transform all those "wasted" rent payments into mortgage payments that actually give them something tangible. Others see home ownership as a sign of their independence and enjoy the idea of being their own landlord. Narrowing down your big-picture home ownership goals will point you in the right direction. Ask yourself these questions:
What type of home will best suit your needs?You have several options when purchasing a residential property: a traditional single-family home, a townhouse, a condo, or a multi-family building with two to four units. You can save on the purchase price in any category by choosing a fixer-upper, although the amount of time, sweat equity, and money involved to turn a fixer-upper into your dream home might be much more than you bargained for.
What features will your ideal home have?Stay flexible with this list. At the same time, though, realize that this may well be the biggest purchase of your life, and you deserve to have that purchase fit both your needs and wants as closely as possible. Include basic desires, like neighborhood and size, then go all the way down to smaller details like bathroom layout and a kitchen that comes with trust-worthy appliances.
How much mortgage do you qualify for?Before you start shopping, it's important to get an idea of how much a lender will actually be willing to give you to purchase your first home. You may think you can afford a $300,000 home, but lenders may think you're only good for $200,000 depending on factors like how much other debt you have, your monthly income, and how long you've been at your current job.
How much home can you actually afford? Sometimes, though, a bank will give you a loan for more house than you really want to buy. Look carefully at the house's total cost, not just the monthly payment. The monthly payment is important, along with how much down payment you can afford, how high the property taxes are in your chosen neighborhood, how much insurance will cost, how much you anticipate spending to maintain or improve the house, and how much your closing costs will be.
Who will help you find a home and guide you through the purchase?
A Realtor will help you locate homes that meet your needs and are in your price range, then take you to view those homes. Once you've chosen a home to buy, we can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. Our expertise can protect you from any pitfalls you might encounter during the process.
Emcee Arah - "the REALTOR with Architectural Dimension" – is both a Certified Distress Property Expert (CDPE) and a Certified Investor Agent Specialist (CIAS). He is uniquely equipped to assist you in navigating the residential real estate market in DC and the Maryland suburbs. Contact us online or by phone at (301) 452-5252. And don't forget to leave your comments below or on our Facebook page – we'd love to hear from you!
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