First Time Home Owner Tips
May 23, 2017
Becoming a homeowner is a dream for many people. It’s also the largest investment most of us will ever make, so it’s best to go into it knowing what is and isn’t required.
Here’s What You’ll Need To Get Started:
1) A down payment
2) Enough money to make monthly mortgage payments.
3) 4) A good credit report
4) Enough money to pay property taxes, insurance, utilities, etc.
Here Are Three Tips To Becoming A First Time Home Owner
Tip One: Decide On The Type of Home You
You start by choosing the neighbourhood you want to live in. However, if the home prices are out of your means – it’s time to consider other options.
The next thing you will want to do is decide the features that are important to you. Is it interior square footage or a larger backyard? Once you know your needs versus your wants you will be able to make a better decision when it comes to choosing your first home.
Tip Two: Calculate How Much You Can Comfortably Afford
First start with your down payment? Have you saved enough to qualify for a home? If not, how will you save the other money.
If you have saved enough money for a down payment have you also calculated your closing costs. If not, it would be great to find out how much money you need to close the deal legally.
Once the above are done focus on the mortgage costs. Just because you can afford $350,000 should you use your full allotment? For some people the answer is yes. For some people they may have different cash flow due to seasonal work or being a consultant, or whatever their life circumstance will be so using less money on the mortgage makes more sense. Again, this is solely based on individual needs, lifestyle and comfortability.
The last item to consider is home repairs if you do not buy a new home. Will you have the money to take care of items such as hot water heaters, shingles, appliances or anything else that may require fixing?
Tip Three: Take as Much Help and As Much Advice as you can get
If you have parents that can help you through this process, great! Lean on them to learn the process of homeownership.
Before you begin house hunting and picking out curtains be sure you visit your bank or home lender and find out what you are pre-approved for.
Hire a lawyer to take care of the legal work.
Be sure to get an appraisal or a home inspection on the home you want to purchases. And once you’ve done all that be sure to get insurance on your property after the deal is done.
Good luck with the purchase of your new home. As always, we are here to help if you have questions or concerns.