Every first home buyer is nervous. It is a big step; a huge life event. It is expected to be met with some trepidation. It doesn’t have to be completely nerve wracking though. There is hope for a pleasant experience.
Know your budget. Being keenly aware of your first home buyer budget and your financial limitations is the most important factor in buying your first home. Everything centers on what you can afford to pay for as a first home buyer. Use an online mortgage calculator to generate the amount you will be paying each month before you make any decisions. Don’t forget to add in taxes and homeowners insurance before tallying your final monthly payment. Keep detailed records of all your expenditures for tax purposes. A real estate attorney can help you get your documents in order and make sure everything is legal.
Check websites to find the average selling price for homes in your part of the country. Be knowledgeable on the going rate for specific types of homes in your area so you know if the asking price is right. It also helps to give you an idea of what you’re going to pay before you begin the real search. A first home buyer should be armed with as much information as possible.
Know what your closing costs will be as soon as possible. Closing costs can be expensive. They can easily surprise a first home buyer. The lenders origination fees, settlement and title fees, taxes and any fees associated with prepaid insurance or homeowners associations are all upfront payments and should not be overlooked.
Check out the neighborhood and the school district. A first home buyer with children will want to know all available information on the schools their children will be attending. You may have found the home of your dreams but the love won’t last long if the neighborhood is crime ridden and the schools are plagued by gangs and have the lowest test scores in the state.
Remember your tax credit. A first home buyer is awarded a unique tax break in the year they buy the home. You have to have either bought or entered into a legally binding contract in the previous year to be eligible for the credit. It must be your only home purchase in the previous three years. This tax credit can seriously help a first home buyer. It can either increase your refund or decrease the amount of taxes you must pay.
A first home buyer has many hurdles to jump and bridges to cross. From financing to home repairs, there is always an issue to confront. The most important tip for any new homeowner is to take it one step at a time and be patient. Buying a home is long, complicated legal process that doesn’t happen overnight. Be prepared for glitches and hang ups along the way. Buying a home doesn’t always happen as you plan.
Knowing what to expect and being prepared are the first important steps for a first time home buyer.