Skip to main content

5 Tips for the First Time Home Buyer

Want to buy a home? Consider the following before taking the big plunge!

1. Are You Ready to buy a home? 

You need to get your financial house in order. The first thing to determine is how much you can afford with the added expenses you may incur after purchasing a new home. 

List your current monthly budget and the anticipated monthly budget you will have once you move into your home. Compare the totals and determine how much more a month you will need to live in your new home. Try living "as if you own" for 6 months, once you determine if you can live the new lifestyle, then you are ready to buy!

2. How Does Your Credit look and what is a FICO score? 

A FICO score is a credit score developed by Fair Isaac & Co. Credit that gives everyone with any kind a credit a scoring method that determines if a credit user is more trustworthy in repaying their bills. It takes into account timely payments, current balances on credit cards, length of credit history, residence and other factors to see if you are a high or low risk. 

There are numerous resources available online that allow you to run your credit report from the three major credit reporting companies. Equifax, TransUnion and Experian.  Credit scores will help a lender determine what types of loans you will qualify for and the rate of interest you will be charged. Run a report and see how you rate! 

3. Do I need a down payment?  

You have stories about 100% financing and "no down payment" loans.  These sound great in theory, but the truth is you will pay much more in interest and for the total amount of the house. Obviously, the larger the down payment, the less your monthly payments and interest will be. Saving for a down payment could be as easy as anticipating how much extra you will pay to live in your new home, put it in savings and let it grow. When you move into your new home, you will be in the habit of making the larger payments and know that you can live sufficiently within those limits. 

4. What type of house should you by? 

Knowing your situational needs for space and the features that appeal to the entire family, should help you make a list of your priorities.  Decided how many rooms you need, your favorite architectural style, distance to schools, shopping, hospitals, recreation and other important locations to suit your family’s lifestyle. Prioritize your list into minimum requirements and luxury "wish I had...". Have this list with you when visiting a real estate agent or just looking on your own. It will help you keep a focus on what is important and necessary in your new abode. 

5. Be prepared for the hunt. 

After you know where you stand and know what you then boils down to finding that dream home in the perfect location. Patience is a virtue and this is the time to exercise that trait. It can be frustrating to find that the house you want exceeds your budget, or is located in an undesirable neighborhood. Be prepared to look, ask questions and go the extra mile, but always make sure your needs list is met. 

Learning details about the buying process will help make this step of home buying simple and will get you into the home that fits your needs. 


Comments

Post a Comment

Popular posts from this blog

Home Decorating Fabrics

Home decorating fabrics are meant to compliment a room. Beautiful fabrics can improve any space. Home decorating fabrics are used in upholstery, couch covers, slip-covers, bed coverings, window treatments, table coverings, etc. A room without home decorating fabric is plain with a cold feeling. Using home decorating fabrics, a space can be transformed into an inviting, warm and cozy place to relax and enjoy with family and friends.  Because home decorating fabrics are an essential part of decorating a space, it is important to choose those that correspond with the other objects in the room. It’s easier to pick home decorating fabrics if you are using advice and suggestions for a particular decorating design. Without any direction, your interior decorating project can become frustrating and discouraging. Instead of working toward your dream home, you’ll find yourself caught up in a nightmare.  There are plenty of home decorating themes to choose from. Each of them has their own...
Post a Comment
Read more

Home Interior Decorating

Home interior decorating is a perfect opportunity for you to express yourself. Home interior decorating allows you to showcase your interests; interests in furniture, art and even different cultures. Every decorating style is different, with some being elaborate while others are plain. However, there is a home interior decorating style to suit your personality as well as your budget. Budget is usually at the top of the list when making plans for home interior decorating. It is easy to look at a picture and want to recreate it in your space. Sometimes the details in home decorating pictures are quite expensive which may introduce obstacles for you. There’s no need to be disheartened however, there are always alternate ideas to help you achieve your ideal space.  Resources such as magazines, books, television programs and Internet websites are very helpful with suggestions and ideas for home interior decorating. Using these resources you’re bound to find alternatives to any problems...
Post a Comment
Read more

Home Decorating: Bathroom on a Budget

When it comes to home decorating there are few rooms that have quite the impact of a bathroom or kitchen when being decorated. There is something wonderful about taking a tired old bathroom and making it seem bright and shiny once again. Most people, however, cringe at the thought of a bathroom remodel fearing the absolute worst when it comes to their financial situation once all is said and done. The good news is that small steps can lead to big changes in rooms as small as bathrooms. These small steps do not have to have large prices in order to be highly effective. My suggestion with a bathroom is to assess where the worst blemishes and eyesores may be. Painting the walls can be a good place to start but you should first decide whether you are planning to remove any cabinetry. This is one room where it is best to save the painting for later in the project rather than the beginning. The vanity in many bathrooms takes up a good deal of real estate.  Gone are the days when chunky ...
Post a Comment
Read more