4
By HomeFinder.com A little extra research can help you make an educated decision when it comes to purchasing your first home. Class is now in session.
for first-time home buyers
PIXABAY.COM
TIPS
Start saving now
Balance emotion and logic
If you’re just beginning the home buying process, you may want to consider dedicating more funds to your future down payment. It’s a good idea to consider your price range in advance, so you can accurately estimate how much you will need to squirrel away for the down payment. Work with a licensed financial professional to get the best advice for your unique situation. Assignment: Open a separate savings account and start allocating a dedicated monthly amount to this“New Home Fund.” Extra credit: Create a detailed plan to help you save your goal amount. Figure out how much money per month you will have to set aside in order to reach your estimated down payment price, and how long it will take you to hit your desired number.
Don’t let your enthusiasm for a specific home blind you to harsher realities, such as the need for drastic renovations, an inconvenient location or a lack of specific necessities. Assignment: Create a“Must Have”list and a“Nice to Have” list for home shopping, and bring it with you to every showing. Include items that are important to you, such as“commute length,” “no stairs”or“appliances included”. An ultra-specific list can save you time and prevent you from making a decision you’ll regret further down the road. Extra credit: If you really like a property bring an impartial party, like a friend or relative, to view it. They’re more likely to see the place as it is, and give you an honest assessment of whether the home features everything on your “Must Have”checklist.
Know exactly how much home you can afford The true cost of a home can be so much more than just the listing price. To calculate what you can afford, take into account mortgage payments, property taxes, utilities, the cost of upkeep, HOA dues and other expenses, such as the cost of your commute. Extra credit: Once you know how much you’re able to afford per month in housing costs, attempt a trial month. See if you can live off the remainder of your take-home pay without spending the money that would go toward housing expenses.
Have the home inspected A home inspection contingency can be added to the purchase contract for the home, which means that you will be able to cancel the sale or negotiate for repairs based on the results of your inspection. A good home inspection can reveal all kinds of potential issues with the property, and it can even kill a sale. Assignment: Research home inspectors in your area and choose the one who best fits your needs. Have your chosen inspector’s contact information ready for when you find“the one.” Extra credit: Sometimes small problems revealed in the inspection can turn out to have much larger causes. It never hurts to ask questions, order a second inspection, or dig deeper into the little things to make sure there aren’t bigger problems just below the surface. The time window for inspecting a property can be short, so if your inspector finds anything out of the ordinary that you want to investigate, act quickly.
FS-0001399026-01
RIVER VALLEY REAL ESTATE & HOME - APRIL 2021 | 7
