marco asked:
As a first-time home buyer, you are going to be setting out into a real estate market that is oftentimes full of complexities, legal wrangling, negotiations and more. You first need to determine whether you can afford to buy a home. You should already have an idea of home much you can pay monthly for a mortgage loan. If you do not, then sit down how much you are bringing home each month and how much is going toward your current financial obligations.
The figure is an important fact to be aware of because most lenders will reduce the amount of money you can borrow for a mortgage loan. Lenders become quite wary if your mortgage payments, property taxes, homeowners insurance and other debts payments exceed 36% of your total income. Depending on how much house you want to get into, you would have to pay down your debt so that your payment obligations do not eat up a high percentage of your monthly earnings.
You should also be aware that a competent, professional and ethical real estate agent can save you both money and time in your real estate transaction. You should not venture into the real estate market without a good real estate agent protecting your interests.
If you are wondering whether you would be better off in a new or older house, you should look at new and old homes and determine their characteristics. An older home will generally have a lower property tax rate, it may offer a more established neighborhood and neighbors who really care about where they live and taking care of it. An older home will usually require repairs, so you should be the type who enjoys working your home or be prepared to pay people to do the repairs.
On the other hand, homes that are newer have modern systems and architecture, easier maintenance and upkeep and they are perhaps even more energy efficient. If you do not want to worry about repairs, upkeep and maintenance right when you move in, then you should consider a new home. It makes no difference whether you decide to buy a new or older home, make sure you have it inspected by a professional home inspector.
Potential issues that can arise and that you should be aware of are maintenance and systems problems in older homes. You have to know what needs to be replace or repaired and what requires regular maintenance such as the roof, paint, appliances, the rug, etc. You should get clear and definitive information regarding these issues, so ask questions until you are satisfied that you understand any and all issues.
You might end up looking at many homes, so it may not be a bad idea to take photographs of the homes you have seen. People who are searching for a home generally see an average of 15 homes before making a decision. Therefore, write down the things you liked and did not like about each home you visited. If you are unsure about anything, go back and take another look at the home so things can be clear in your mind. Talk to your real estate agent about everything you want and need so that you do not end up wasting your time looking at a bunch of homes that are not right for you.
Jamie
As a first-time home buyer, you are going to be setting out into a real estate market that is oftentimes full of complexities, legal wrangling, negotiations and more. You first need to determine whether you can afford to buy a home. You should already have an idea of home much you can pay monthly for a mortgage loan. If you do not, then sit down how much you are bringing home each month and how much is going toward your current financial obligations.
The figure is an important fact to be aware of because most lenders will reduce the amount of money you can borrow for a mortgage loan. Lenders become quite wary if your mortgage payments, property taxes, homeowners insurance and other debts payments exceed 36% of your total income. Depending on how much house you want to get into, you would have to pay down your debt so that your payment obligations do not eat up a high percentage of your monthly earnings.
You should also be aware that a competent, professional and ethical real estate agent can save you both money and time in your real estate transaction. You should not venture into the real estate market without a good real estate agent protecting your interests.
If you are wondering whether you would be better off in a new or older house, you should look at new and old homes and determine their characteristics. An older home will generally have a lower property tax rate, it may offer a more established neighborhood and neighbors who really care about where they live and taking care of it. An older home will usually require repairs, so you should be the type who enjoys working your home or be prepared to pay people to do the repairs.
On the other hand, homes that are newer have modern systems and architecture, easier maintenance and upkeep and they are perhaps even more energy efficient. If you do not want to worry about repairs, upkeep and maintenance right when you move in, then you should consider a new home. It makes no difference whether you decide to buy a new or older home, make sure you have it inspected by a professional home inspector.
Potential issues that can arise and that you should be aware of are maintenance and systems problems in older homes. You have to know what needs to be replace or repaired and what requires regular maintenance such as the roof, paint, appliances, the rug, etc. You should get clear and definitive information regarding these issues, so ask questions until you are satisfied that you understand any and all issues.
You might end up looking at many homes, so it may not be a bad idea to take photographs of the homes you have seen. People who are searching for a home generally see an average of 15 homes before making a decision. Therefore, write down the things you liked and did not like about each home you visited. If you are unsure about anything, go back and take another look at the home so things can be clear in your mind. Talk to your real estate agent about everything you want and need so that you do not end up wasting your time looking at a bunch of homes that are not right for you.
Jamie