First Time Home Buyer

First Time Home Buyer Tips

First Time Home Buyers Tips
Financial Terms
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Financial Terms
Category Construction Glossary
In order to make sure your home buying experience is a pleasant
one that results in a satisfying purchase, there are several things
you need to do.  These include:

Do your homework beforehand
• Hire an agent that represents you
• Don’t overextend your budget

If you follow these three rules of thumb, you should find a great
house that you can call home while also investing in a piece of real
estate that will result in a nice profit when it comes time to sell.

Do Your Homework Beforehand

As a first time home buyer, doing your homework beforehand
mostly involves looking at different house designs and getting a
clearer idea of the type of home you would like to buy.  Are there
certain features that you absolutely must have in the home that
you buy?  Are you willing to buy a fixer upper that you can change
into your dream home over the next several years?  Are you more
interested in finding a place you can call “home” or in a piece of
real estate that will dramatically increase in value over the next
several years?

Don’t forget to also do research on the neighborhoods you are
considering moving to.  Factors you need to consider include the
crime rate, the school systems, the proximity of conveniences such
as stores and gas stations, and the quality of the property in the
area.

As a
first time home buyer, having a clear idea of the type of
home you are looking to buy will help to narrow your focus when it
comes time to make the purchase.  Don’t be afraid to call a broker
to show you several different houses, either.  Just keep in mind
that the realtor the
broker assigns to you is representing the
seller.  Therefore, you should only work with this agent to help you
look at different pieces of real estate so you can get a better idea
of what you are looking for as a
first time home buyer, .

Hire an Agent that Represents You

Once you have utilized the services of a realtor to help you look at
different houses and determine the type of property you are
looking for, it is time to hire an agent to represent you.  With a
buyer’s agent, you can be certain the realtor is looking out for your
best interest rather than trying to close a sale for the seller.  In this
way, you can rest assured that the agent will be straightforward
with you about the pros and cons of the real estate you are
considering purchasing.

Don’t Overextend Your Budget

As a first time home buyer, the amount of money you can afford
to spend on your home will depend on a number of factors.  
Thankfully, there are several Mortgage calculators online that will
help you determine how much you can expect to pay each month
toward your home depending on how much the home will cost.  So,
sit down and take a look at your monthly expenses in order to
determine how much money you have left over to pay toward your
home.  Then, play around with the calculators to determine how
much the total cost of the home can be while still fitting within your
budget.

Keep in mind that you do not want all of your leftover money to go
toward a house payment.  After all, you will need extra cash to go
toward unexpected expenses as well as toward entertainment and
other every day expenses.  A genera rule of thumb is to keep all of
your debts at less than 45% of your total gross income per month.  
Therefore, you can follow these steps to give you an idea of how
much you can afford per month:

1. Multiply your monthly gross income by 0.45
2. Subtract all of your debt payments from the resulting figure
3. Use this amount as a guideline for how much you can spend
each month toward your home purchase

As a
first time home buyer, if you stay within your budget when
you buy your home, you won’t have to worry about the possibility of
losing the home you always dreamed of having.  Similarly, by hiring
a buyer’s agent and doing your homework ahead of time, you will
be certain to be pleased with your purchase for years to come.