If you are a first time home buyer and you are looking forward to getting the best deal on a house, there are things you will need to consider before you go ahead with the decision. The following are some of the things you will need to consider.
The first thing you will need to do is to check the selling prices of other homes in the area where you want to purchase the house. To make the task easier, you can do a quick search on multiple listing services for houses in that area or check the house listings on several websites, and also the National Association of Realtors. It will also be a wise step to use a bank rate’s mortgage calculator to get a glimpse of the mortgage payments you will be making each month in case you will buy that house.
You will need to figure out what the total housing will be per month. This should be inclusive of the taxes as well as the insurance of the homeowner. In some cases, the payments for taxes and insurance can be twice as much as the mortgage payment. To get an idea of what the tax payments will be, you can just look through the website of the local appraisers. You should be aware of exemptions as well as local tax law intricacies that can cause differences between the amount the homeowner is paying currently and what you will be paying if you acquire that home. To get an estimate of the insurance just inquire from the local insurance agents.
Another important factor to consider if you are a first time homeowner is your budget. The house you intend to purchase has to be within your budget. It is recommended that a home buyer spends not more than 28% of their salary on the housing costs. Going beyond that puts you at a risk of becoming house poor.
Also make sure that you talk to competent realtors in that area to determine the real estate situation. You will for instance need to find out if the price is going down, the reason why that is so and if there is a likelihood that at some point the price of houses may start going up. If there are fluctuations over house prices in that area you need to find a reason to that.
The security of the place you want to purchase the house as well as that of its neighborhood is also of a matter of utmost importance. Check with the police department to confirm if there have been any criminal cases reported in that area, what kind of cases they were and how frequently they occur. You do not want to risk buying house in a place where there has been reported frequent cases of theft, robbery with violence, rape just to mention a few. You should be confident enough that the security of that place can allow you to live a peaceful life.
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