House Buying Info

The first things in life are many times exciting, for example, the very first time you learned to walk, to the very first time you attended school, the first time you fell in love, your first job.

Regardless if you're planning to own a home because you're sicked and tired of renting or just wish to move out of your family's house, getting a home for the first time is a big move. You should find out what you can afford, precisely what size house you are searching for, etc. No matter what the circumstance is, this step is a very stressful step for many.

Paying rent for a home rather than buying one appears like a simpler and less taxing way to go. You need to do some research to determine the benefits of owning a home verses renting one. You might realize that owning a home is a much better alternative.

Exactly how to identify when it's your time to buy your first home

With renting you will never own something but you will be paying down the landlord's mortgage giving him the equity and appreciation in the home as well as the tax right offs that come with owning a home. With owning your own house you get to be the boss of your domain. You can make modification to the house that are to your liking, you get the benefits of tax right offs and appreciation that will occur as the market moves up and most of all it's like a savings account because you will have equity built in to the house.

What To Think About Prior To Buying Your First Home

Regardless how good the market might seem, its best to find a competent realtor and talk about what the essential things you're trying to find in a home so they can better refine your search.

Will I be able to afford it?

Houses are more reasonably priced and coupled with low interest rates is making it enticing to first time house buyers. You have to remember that buying a home comes with big upfront costs such as money down on home, closing costs, cost to furnish the new home and possible moving expenses.

Start to write down a budget of all the costs to operate the house and cost of home, write down your mortgage payment with taxes and insurance, your oil or gas bill, electric, and water bill. Things that all houses use to function. Then that will be your cost of residing in the house.

Do you have intentions on living there past 5-7 years?

Almost all financial experts will inform you that unless you plan to stay in the house for a minimum of five years, you most likely will not recoup any of the expenses that came with purchasing and selling the house in the near future.

None the less, your first couple of years of making mortgage payments will all go towards paying down the interest and not you're principal, so you will most likely not have built up equity in the home unless you had put down a hefty amount. If your intentions is to move in five or so years you are most likely better off renting.

How will I be impacted if I purchase a house with another person?

Purchasing as home with another person has its upsides, if both of you have stable jobs, by combining both your monies and resources you are most likely to get a larger and better place then you would have on your own. It also helps take some of the pressure off when you're splitting the expenses. Right before you go out on a house buying spree, you need to sit down and set some ground rules in terms of the finances as this will alleviate problems in the foreseeable future.

Do you have the funds needed to buy a home?

Purchasing a home calls for a hefty amount of cash upfront to cover the initial down payment and closing costs which range from a 3% government loan in which you then pay mortgage insurance or 20% for a conventional loan. If you plan on buying a condo or townhome, then you better factor in the fees that are required by the homeowners association.

What if you buy a fixer-upper instead, will that spare you money?

If you have the energy and drive and do not mind performing the work then you can save money in the end and personalize it to your taste, however remember that home upgrades will still cost you, just be prepared to put in a budget and not to go crazy.

How About A Foreclosure?

It appears to be appealing financially to purchasing a foreclosure however you will be competing with other investors and home buyers and have the cash on hand to purchase. Often times the cost of foreclosures gets bid up and you still have to fix up the home, so you can end up paying too much and shelling out more than you should have or would have if you just bought a home not in foreclosure. Way to many first time home buyers get into this mess because it sounds nice buying a house on what's considered a bargain and fixing it up to make it your own.

If you really need a home quickly, then buying a foreclosure might not be the best choice as they can often times take in excess of 90 days to close.

Is The Community And Location The Right Place For You?

Usually most first time house buyers are young couples who would like to be located around shopping, nightlife, food and recreational activities. This is why these family friendly neighborhoods are most ideal for young families or couples just beginning. More often than not living in these types of communities comes with a price tag. New couples may not have the ability to afford to reside in these high end neighborhoods. Sometimes it makes good sense to buy a little further out as you can get better deals and still be close to where you want to be.

Whatever it is you are looking for, its best to work with a professional real estate agent that has knowledge of the area you desire to buy in. They can help make your search a lot easier and show you alternatives you might not have normally considered or known about.

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