| First Time Buyers |
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What an exciting time! Searching for a place to call your first home is a wonderful experience. Envisioning what it will look like and the features it will have. There are many factors to consider when planning what could possibly be your biggest asset-Your First Home. Before you start to look for homes grab a copy of your household budget. Determine what you can afford to spend on down payments, closing costs and a monthly mortgage. Don’t forget to figure in long-term costs like utilities, taxes and insurances. Avoid dreaming too big for your pocket book. Next stop is to a lender. Ask friends and family if they have any recommendations and if you are loyal to bank for your other financial needs, inquire with them, but get a pre-qualification and a number to work with. With your financial state firmly imprinted in your head take a few moments to make sure this is the best time for you to buy. Do you see yourself moving again in another five years? Are you planning on having kids soon? Is there any indication you will need to change jobs? Have you filed for bankruptcy, suffered serious illness or gone through a divorce? If you answered yes, it may be best to wait before purchasing a home. On the other hand, if you are having difficulty with finances at this time and were really looking forward to owning your first home, you could actually strengthen your financial position by purchasing an REO or foreclosed home that needs a little bit of work that you could complete yourself over time. Purchasing a duplex property would also allow for a rental unit to help cover the mortgage costs. Moving beyond finances, take time to think about your lifestyle and make sure the house you are looking for matches your way of life. This could be the difference between a maintenance free condo, with no grass to mow, and a little bungalow in suburbia. How do you plan on spending your weekends-this insight will help you identify in what neighborhoods to begin your search. Who are the people in your potential neighborhood? How are the schools? Take time to look at taxes, transportation, crime rates and especially zoning in the area. If your neighbor decides to start collecting old cars in the yard it will impact the value of your home or maybe you are interested in collecting cars-either way, it is good to know what is allowed and what’s not. Finally you can start making that list of what you are looking for in a home. Don’t forget to prioritize-what’s important and what’s negotiable and remember, it is not very likely that you will find a home that meets all of your needs. Nothing will be perfect. You may not have realized how much introspection buying your first home entails, but it is the best practice for success to realistically examine your life, where you have been and where you are headed. Once you are being honest with yourself, then you are ready to jump into home ownership with both feet first. Time to hit the open houses! Happy Searching!
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