Buying a home is extremely challenging, and can seem so daunting that potential home owners decide to take the easy way out and just rent. Bad idea! Instead of taking the easy way out, try finding some professional advice to help you along the way.
FHA loans will let first time home buyers get the 8000 tax credit in advance to use for closing costs or to add to the 3.5 % down payment
— Suze Orman (@SuzeOrmanShow) May 29, 2009
The first time buying a home is likely the most challenging of them all. When you don’t know what to expect or how to prepare, it can be easy to be taken advantage of without notice. Preparing yourself with some professional advice will help you survive the difficult real estate market for your first time.
Without any prior experience dealing with real estate, you can walk away with your dream home that falls in your price range. All that you need to do is read the following advice for first time home buyers. This is an assortment of tips that many new home buyers don’t yet know. Read them carefully and remember their advice when you are shopping for a new home.
Start by determining your long-term goals. Know how long you want to stay at the property and what you hope to accomplish from purchasing it. Are you looking to later resale the property for a profit? Are you looking for a new home for you and your family? Different goals require different approaches. If you aren’t entirely sure, try narrowing this larger question down into several smaller ideas.
What kind of home would suit your individual needs? There are a lot of different options to consider when you are looking to purchase new real estate. You can purchase a traditional home for a single family. You could go more extravagant and purchase a condo or a townhouse. The type of home will have a large impact on how much you will be spending. If you know what your larger goals are for the home, the type of home may be easier to decide.
It might be a better idea to find a “fixer upper”. Turning a property around for a profit is a good example. In this case, you want to find the best real estate for the best price. A fixer upper will always cost less than a well-maintained home, but it is the potential value that you are concerned with. Calculate how much it would cost to fix the home and combine that with the initial cost. Even when added together, there will usually be some profit margin between that number and how much you can resale the home for. Ask for professional advice and quotes if you want specific math.
Do you know what kind of features you would like in your home? This shouldn’t be a list that is set in stone, but it is good to know what to expect and have some standards when shopping. There may be some simple features that you require, like a ramp, a garage, or something more. Most features can be added at a later time if they aren’t worth the additional cost or are making the search too specific. Some details, like the floor layout, are slightly more important.
Find out how much mortgage that you qualify for before you begin shopping around. If you think you can afford a home for X dollars, but lenders only lend Y dollars, then you may have to save or find another home. Find out ahead of time and you won’t be surprised later when you begin searching. Work on improving your credit in the mean time because this will help you qualify for larger loans. If you have any unpaid debts in your past, these will not help.
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