Tips For First Time Home Buyers
Tamra Lee Ulmer wrote a great blog that first time buyers should see.
Being a first time home buyer is exciting. But everyone knows it can also feel overwhelming – especially when you see homes being purchased at a median of $250,000 and available homes flying off the market in just two to three weeks.
With real estate trends like those, you might be tempted to make an impulsive purchase that could hurt your financial goals and keep you paying a mortgage to well into retirement. No one wants that, it is worth doing this the right way and that means buying a home that you love and doesn’t hurt your future money goals.
PAY OFF ALL DEBT AND BUILD AN EMERGENCY FUND
Owning a home is expensive — much more expensive than renting, even if your monthly house payment will be similar or cheaper than your current rent amount. That is because when you own a home, you are responsible for all the maintenance and upkeep costs. And those can add up fast. So, before you even think about buying your first home, make sure you’re debt-free and have an emergency fund of three to six months of expenses in place.
DETERMINE THE PRICE OF THE HOUSE YOU CAN AFFORD
Before you get emotionally attached to a beautiful house, check your monthly budget to determine how much house you can afford. You need to leave room in your budget for other things, so make sure your monthly housing costs (including taxes, insurance, etc.) are going to be no more than 25% of your monthly take-home pay.
SAVE DOWNPAYMENT
If saving up to pay cash for the total price of a house isn’t reasonable for your family’s timeline, at least save for a down payment of 20% or more. Then you won’t have to pay for private mortgage insurance, which protects the mortgage company in case you can’t make your payments and end up in foreclosure. Private mortgage insurance usually costs 1% of the total loan value, and it’s added to your monthly payment.
ATTEND OPEN HOUSES AND THINK LONG TERM
When it comes to buying, a good strategy is to find the most affordable house in the best neighborhood. If you buy at the bottom of the price range in a good neighborhood, you’ll have more room to build home value.
Professionally,Tamra Lee Ulmer - FORCE~ NRBA~ A-REO™~ CDPE~ NAHREP~ NABPOP~ C-REPS~ FIVE STAR ~ BPOR ~WBENCExceptional Service For Exceptional People.........My Clients!
BROKER/OWNER - Arizona Resource Realty - Specalizing In Cabins, Log Homes, Luxury Homes, Land For Sale & Foreclosures!www.ResourceAz.comwww.MyCabinSearch.comwww.AzLuxurySearch.comwww.ArizonaLandSearch.comwww.MakeTheBankAnOffer.comSearch the Entire State Of Arizona on my sites!
Comments(6)