Congratulations! You have taken the big mental leap into learning more about how to buy a house and get on the housing ladder for the first time.
I know that this area can seem confusing, and in this article I am going to shed more light on the process of buying your own home with a selection of home buying tips.
It should be everyone's goal to own a home. When you rent its like throwing away your money. Why do I say that? When you're buying a home you are building equity. That's like putting money in your pocket.
When you rent, you give the money to someone and that is it! You can't go back and borrow it back. It's gone!
Whereas with equity, you could borrow against your house if need be. It's like having an emergency fund available. Once of my clients needed money to help his son who needed to be placed in a special program. He needed $20,000 for his son's care.
He didn't have that kind of money saved! But he did have equity in his home and was able to borrow what he needed. Now his son could receive the specialized care he needed. In addition, he was able to do it with a low interest rate. Owning his own home made this emergency affordable for him.
Plus, when you own you can make the inside and outside of the house look the way you want it. Then if you get tired of it, you can change it. It's your home, to do as you wish.
But buying a home is a major purchase, probably the biggest purchase you'll ever make. So don't just jump into it without knowing what you're doing.
Of the home buying tips, this is a difficult one. So let's get it out of the way immediately. Whatever you may have heard about the housing market being depressed, or house prices being stagnant, the fact remains that nice homes in desirable neighborhoods still cost a lot of money.
So the first task that you MUST undertake is to evaluate how much money you potentially have to spend on a new home, as well as a breakdown of all your current income and expenses.
This needs to be realistic and based on a long-term plan to pay any mortgage and bills that will arise as a result of owning a home, and also it must take into account any future expenses that you can foresee such as childcare costs if you plan on having a family.
you have worked out your income, expenses and projected future income
and expenses then it is time to go and speak to a mortgage adviser. You will need to
learn more of the financial intricacies of how to buy a house. So let's
zero in on these tips for first time home buyers.
Most real estate agencies will have a mortgage adviser on the team, so if you want an impartial person to assess your suitability, perhaps before visiting your own bank manager, then these are a good first port of call.
They can crunch some numbers and come up with some accurate projections of how big a mortgage you might be able to get, what the payments might be, and how much deposit you may need to have.
This is important, no sense in buying a house if it's not practical right now. So check and see if you are financially ready to make this step. If you find out you are not, that's actually a good thing. Now you can set goals to put yourself in line for home ownership in the future.
If you want to do this yourself, you can use my mortgage calculators to figure it out. Just input the information requested and whalaaa.....you can see if can do this right now or not.
Once you have completed the two tips for first time home buyers mentioned above and are still in the game, cool this next tip is fun. You have your budget set up and have your bills in line to afford the home. You also have gone through the process to see if you can qualify by talking to a mortgage adviser. Now the fund part......go out and find the home of your dreams.
These are three basic tips for first time home buyers, but they will get you on the right road to success.
You may want to print out a checklist to checkoff as you go. Now you can stay on track to following your dream. I have one on this site to help if you would like to use it. Click on the checklist link to find it.
Go to House Buyer Solutions Home Page.
Oct 08, 19 08:33 AM
Hello, I have a question regarding USDA vs. FHA home loans. I am in the process of getting a home in the next month but was told I wouldn't be approved
Aug 05, 19 10:44 PM
Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.
Apr 15, 19 12:36 PM
When buying a home out of state, should we wait for employment contracts? Or can we use our current state's bank? Find the answers here.
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