First Time Home Buying Tips by Real Estate Expert Patrick Howells
Written by~Real Estate Expert Patrick Howells
This might be the toughest subject to cover, because I could really write a book. I have decided to just highlight some of the most important things to know about and consider when buying a home for the first time.
. Understand the Process: Know the details of home buying from starting to look all the way to moving in, upkeep and maintenance. Really gain a sound understanding so you do not do things that could cost you or cause you issues along the way. Best way to accomplish this is to talk with a great Realtor and have them teach you the process.
. Create a Budget: Typically you will qualify for much more than you should spend. Take the time and get qualified with a very good and trusted Mortgage Lender. Take time and sit with all of the costs to get a home, then figure out really how much you should spend. Make sure to get what the total payment or PITI (Principle, Interest, Taxes, Insurance) will be. Dont forget to take into consideration MI (Mortgage Insurance) that you will have to pay if you dont have at least 20% down. Get a good estimate on what your closing costs are going to be. Once you have all of these numbers now you can really begin to work a budget. Dont forget to account for things like utilities, food, cars, car & health insurance, vacations, date nights etc… This can either be a great spring board into your financial success or if your not careful could be the start of a huge financial burden / calamity.
. Consider all Angles: Dont just look at today. Consider a home for today, tomorrow and in the future always looking at Resale factors. Sometimes people don’t look at everything and then wham life happens and now they have kids and are stuck in a small condo, that they cant sell. The sad thing is that they might of been able to be in a home with some growing room for the same price or less than the condo.
. Understand Financing and Debt: Most people think they really understand loans, financing and how debt works. The fact is that very few truly understand the power of debt and the huge monster you are fighting. Those who really understand it either don’t have debt or are doing all they can to get out of it. This subject alone could be a 1 hour class. Understand interest rates, term of the loan, pre-payment penalties, refinancing and why for most people they should NEVER EVER refinance. This one subject if you truly understand it will do more for your future wealth than any other!!
. Research Values: Research the values of the homes you are looking to buy. In this market you have to get a great buy otherwise you will be upside down before you know it.
. Always Consider the Worst Case Scenario: It is important to always consider worst case scenario and if something bad happened would the house become a burden and a hardship. People only get hurt in Real Estate when they HAVE to sell. Right now the market is down, for those who cant pay their payments it is a dire situation, but if you don’t have to sell you can just wait it out till things get better and then sell when it is favorable. This takes work in the beginning to be able to have the ability to sell when it is right for you.
. Be vigilant in qualifying the home: You cant be to careful with inspecting the home and looking it over with a critical eye. The last thing you want is a money pit! Consider testing for Mold, Meth, Radon etc… Make sure you understand the life that is left in main systems of the home like the roof, furnace, A/C and water heaters. These things can get costly and if you are not aware of these things could really cause you problems financially.
. Understanding Real Estate Agents: How they work, who they represent and how they get paid.
All in all buying your first home is a wonderful time and should be an amazing experience, you just have to be careful and wise about it. Ironically this is just the topics that you should look into, there is far too much information to cover here in a blog post so please be cautious.
For anyone who would like to learn more I will offer you a no obligation FREE CONSULTATION where we can go over all of these things in detail. Call 801.523.8900 today for your free consultation. You can also visit our website HERE.