BUYING YOUR FIRST HOME
Buying your first home can seem like a daunting process. From mortgage rates to taxes to closing costs, there’s certainly a lot to consider. And because your new home will likely be the biggest investment of your life, it’s crucial that you educate yourself about the process before you get started. The more you know about the home buying process, the more likely you’ll be to get the home of your dreams at a price you can afford. That’s why we’ve put together these tips for helping you achieve your goal of homeownership.
Meet with a lender to find out how much you can afford to pay for a home. Private Label Realty is dedicated to providing the best possible experience when buying a home, and that is why we recommend using AmeriPro Home Loans for financing. They will help you get preapproved, so you’re ready and prepared to make an offer on a home.
Mortgage payments are only part of the equation. Before you buy, you’ll want to figure out what your total monthly housing cost will be, including homeowner’s insurance and property taxes. The lender will provide an estimate for your monthly mortgage, but to get an idea of insurance costs, pick a property, then call a local insurance agent and ask for an estimate.
Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house, etc.). The second list is your wish list, things you would like to have (pool, study, etc.) but are not necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for your must have list.
Consider hiring a Realtor®, one who is working for you, the buyer, not the seller.
When purchasing a residential property, you’ll have several options to consider. These include traditional single-family homes, condos, townhouses, and more. Each type of property has its benefits and drawbacks, so before you move forward in the home buying process, make sure you pin down which property type will best suit your needs.
Just like properties have their pros and cons, so do neighborhoods. Before you start checking out homes, decide where you want to live and focus your efforts on that area.
Your Realtor can provide the selling prices of comparable properties in that specific area, and having this information will help you get an idea of what you should expect to pay for the home.
It’s important not to overlook the upfront cost for your home. Closing costs include lender origination fees, taxes, title and settlement fees, as well as prepaid items like homeowner association fees, insurance and property taxes. Your lender or Realtor® can provide you with an Estimated Buyer’s Net Sheet.