Must Know Tips For First Time Homebuyers
By Kurt Real Estate Nov 23, 2019
Buying your first home is an incredibly exciting and overwhelming experience. While home ownership provides you with a long-term investment and generally means that you are at a point in your life where you have enough disposable income to invest, it can also be daunting. First-time homebuyers often find themselves fretting over where to start, if it’s the right time, and if they’ve actually found “the one.”
Property Virgins has a few essential tips to help calm your nerves.
– First, and most importantly, identify the neighborhood you want to live in. The house itself can be everything you’ve dreamed of, but if it isn’t in the right location, you can wind up being very unhappy.
– Don’t assume a property will stay on the market…even if it has already been on the market for a long time. Real estate is unpredictable, especially if you are trying to buy a hot property. Don’t wait and lose out to another offer.
– Apply the saying “don’t judge a book by its cover.” It is important that you check out the neighborhood beforehand and, if you like the location, don’t let the yellow paint steer you away. Paint is a low-cost change to make. Take a peak inside; it may have all of the features you wanted.
– Invest in an up-and-coming area. This is where the best investments will be made because your property value is likely to increase significantly. Take Costa Mesa, for example. It has become a very desirable community for young families and investors alike.
– Newer places will almost always be smaller than older places at the same price point. Identify what is more important to you, newness or square footage.
– You can’t negotiate maintenance fees with a condo. Be sure to factor in that added cost and then some – these fees tend to increase over time.
– A middle-unit townhome is often less expensive than an end-unit.
– Take a second look. Once you’ve narrowed it down to your favorite couple properties, revisit them once more. Emotions are usually heightened during your first visit as a first-time home buyer. Taking a second look will help you think with your head not with your heart and make the best decision possible.
– Pay for the home inspection. This is very important. You don’t want to invest all of your savings in a home that you didn’t know had water damage or structural problems. This could save you a lot in the long run.
– Get pre-approved for a loan amount. This way you know your maximum spend and only look at homes within your budget. Be wary of looking at homes you can’t afford. Lust can get the best of you.
– Rule of thumb: your monthly income should be three times that of your monthly mortgage payment.
– Lenders do subtract debt payments from your income so, if you have a lot of debt, you will have a lot less income and, therefore, a lot less for a house.
– When you buy new, you can’t get title until the place is registered and you can’t place your mortgage until you get title. Therefore, during this period, you pay a phantom mortgage (basically like paying rent).
– People sometimes think that starting with a really low offer will get them a lower price in the long-run, but generally it ends up working the exact opposite way.
Though this may be your first time, you don’t have to go into it blind-sighted. Following these tips will help you steer clear of an potential problems or distractions and identify what it is you are looking for. Enjoy the experience of buying a home and let your agent do the grunt work for you.
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