TIPS FOR THE FIRST TIME HOME BUYER/HOMEOWNER
08. April, 2014 |Posted by Debbie Nieman |Categories: Uncategorized
Are you a first-time home buyer eager to get into the market? Here are steps to take to help you decide whether you’re ready to take the plunge.
1. Check the selling prices of comparable homes in your area. You can also do a quick search of actual MLS listings in your area on a number of Web sites.
2. See what you can afford. Use mortgage calculator to see what your payment would be. To get a sense of the maximum you should spend.
3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance. In some areas, what you’ll pay for your taxes and insurance escrow can almost double your mortgage payment.
To get an idea of what you’ll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won’t be obligated to get the insurance, but you’ll have a good idea of what you’ll pay if you buy.
4. Find out how much you’ll likely pay in closing costs. The upfront cost of settling on your home shouldn’t be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowner association fees.
5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor.
6. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there’s no landlord to turn to, and these costs can drain your bank account.
So consider whether you’re ready for the expense and effort of homeownership before pulling the trigger.
If you are interested looking to purchase real estate I can help you make the best decisions for you and your family. Whether it’s looking to purchase or sell, invest or rent, I’m Debbie Nieman and here to help. As a Phoenix Real Estate Agent for 8 years I can assist you with all your Arizona Real Estate needs.
Debbie Nieman
Keller Williams Sonoran Living
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