Kris Kombrink asked:
Purchasing your first home is a big step that comes with some serious decisions. When you rent, instead of own, you are just buying the home for your landlord. Buying a home today is so easy there is no reason to wait, especially since home prices have come down. But, hurry! They are beginning to increase due to buyers rushing to get into the market at the lowest prices. Mortgage rates are also good, so the time is now. Here are some tips to get you started.
Before You Begin, Ask Yourself . . .
Will you live in the home for at least 3 years? If the answer is yes, then buy now. You can break even selling after 2 years the way that homes appreciate in this area, so moving anytime after 2 years is profitable for you. Considering tax advantages, you will more than break even; and, you can write off real estate taxes and the mortgage interest. Rent payments are generally the same as your mortgage payment, so it really doesn’t cost you.
No Down Payment!
Did you know you can buy a home with no money down? Mortgage companies are eager to loan you money if you have good credit and your salary justifies the loan payment. Don’t believe it if you are told you need a big down payment to buy a home . . . that is yesterday’s thinking.
Get Pre-Qualified
This is an easy process. Just call a mortgage company and discuss your situation. You can call your present bank or a mortgage Broker. Ask friends or family for a personal referral. Use someone with a good reputation. Interviewing lenders can be done over the phone, so interview a couple to find the right one for you. Besides asking the current rate, ask about closing costs. Once you select your lender, meet with them personally and get a pre-qualification letter that spells out what you can invest, interest rate and closing cost. You will now use this letter to shop for a home.
Consult a Real Estate Professional ASAP
The most important person in this transaction is the Realtor that you use. Be selective on how to choose your Realtor. Look on the web to find some possibilities. Do not just use the first one you come into contact with. Talk to a few and meet in person with a couple of agents before you look at homes. Make sure your agent sold at least 50 homes in the last year. Anything less than that means you are working with a new agent or one that does not have the experience that will best serve you. This agent represents you, so the agent you choose needs to know the area, have a lot of experience negotiating, and be committed to finding the best home and neighborhood that will meet your needs.
Make a list of “Must Haves” & “Wants”
It’s very important your Realtor know your criteria in order to find homes that meet your needs. You can go to http://www.realtor.com to view homes that fit your specifications. This will give you an idea as to what is possible in your price range and in the location you want. Once again, select your Realtor right away so if you become interested in new construction your agent can negotiate for you. You do not want to not be represented by a Realtor when you are purchasing your first home. This is very risky because this is a complicated purchase and no representation puts you at a major disadvantage.
Make a Decision
Once you find the best home that meets your needs, take action. Homebuyers often hesitate and this could mean you miss the best home that meets your needs. If you have chosen a good mortgage broker and a good Realtor, you should have the facts to make the right decision.
The time is right to buy your first home, so do not wait. If you have the right team of professionals assisting you, it is an easy, wise and exciting process!
Michael
Purchasing your first home is a big step that comes with some serious decisions. When you rent, instead of own, you are just buying the home for your landlord. Buying a home today is so easy there is no reason to wait, especially since home prices have come down. But, hurry! They are beginning to increase due to buyers rushing to get into the market at the lowest prices. Mortgage rates are also good, so the time is now. Here are some tips to get you started.
Before You Begin, Ask Yourself . . .
Will you live in the home for at least 3 years? If the answer is yes, then buy now. You can break even selling after 2 years the way that homes appreciate in this area, so moving anytime after 2 years is profitable for you. Considering tax advantages, you will more than break even; and, you can write off real estate taxes and the mortgage interest. Rent payments are generally the same as your mortgage payment, so it really doesn’t cost you.
No Down Payment!
Did you know you can buy a home with no money down? Mortgage companies are eager to loan you money if you have good credit and your salary justifies the loan payment. Don’t believe it if you are told you need a big down payment to buy a home . . . that is yesterday’s thinking.
Get Pre-Qualified
This is an easy process. Just call a mortgage company and discuss your situation. You can call your present bank or a mortgage Broker. Ask friends or family for a personal referral. Use someone with a good reputation. Interviewing lenders can be done over the phone, so interview a couple to find the right one for you. Besides asking the current rate, ask about closing costs. Once you select your lender, meet with them personally and get a pre-qualification letter that spells out what you can invest, interest rate and closing cost. You will now use this letter to shop for a home.
Consult a Real Estate Professional ASAP
The most important person in this transaction is the Realtor that you use. Be selective on how to choose your Realtor. Look on the web to find some possibilities. Do not just use the first one you come into contact with. Talk to a few and meet in person with a couple of agents before you look at homes. Make sure your agent sold at least 50 homes in the last year. Anything less than that means you are working with a new agent or one that does not have the experience that will best serve you. This agent represents you, so the agent you choose needs to know the area, have a lot of experience negotiating, and be committed to finding the best home and neighborhood that will meet your needs.
Make a list of “Must Haves” & “Wants”
It’s very important your Realtor know your criteria in order to find homes that meet your needs. You can go to http://www.realtor.com to view homes that fit your specifications. This will give you an idea as to what is possible in your price range and in the location you want. Once again, select your Realtor right away so if you become interested in new construction your agent can negotiate for you. You do not want to not be represented by a Realtor when you are purchasing your first home. This is very risky because this is a complicated purchase and no representation puts you at a major disadvantage.
Make a Decision
Once you find the best home that meets your needs, take action. Homebuyers often hesitate and this could mean you miss the best home that meets your needs. If you have chosen a good mortgage broker and a good Realtor, you should have the facts to make the right decision.
The time is right to buy your first home, so do not wait. If you have the right team of professionals assisting you, it is an easy, wise and exciting process!
Michael
