16 First Time Home Buyer Tips
Avoiding First Time Homebuyer Pitfalls
The fear and anxiety first time homebuyers experience is universal. Everybody has heard the horror stories of the money pit house, evil mortgaging companies, and shady real estate brokers. The easiest way to overcome these fears is by confronting them and understanding the most common mistakes and misconceptions of the first time homebuyer.
Undergo a Self Assessment
Before purchasing a house do a self-assessment to find out where you stand and how much you are capable of purchasing. Get a credit report from all three agencies and fix any problems that appear. Don’t start looking for a house until you have a credit score of 620 or higher.
Line Up Your Credit
Once your credit is in line, look for a home with an affordable monthly payment. A realtor will try to push you towards a more expensive home to increase their own profit. So talk to a local mortgage broker to found out exactly what monthly payment you qualify for.
Bring Cash on Hand
On top of being able to qualify for the mortgage you will still need a significant amount of cash to purchase you first home. Save up enough money for things like the down payment, home inspection, appraisal, closing, and a smart shopper will also have a reserve equal to about 6 monthly house payments.
If you are currently in a lease agreement then an early release agreement will need to be arranged. So, you will need to save around an additional 1.5 months’ worth of your current rent to get out of the lease.
Understand the finding a home you will live in for many years to come is a real commitment—not a weekend project. The average homebuyer spends about three months shopping for a home before finding the one right for them.
Decide What You Want
Write down the basic essentials that your ideal home will need to have. As you are searching for the right home keep your list handy and don’t settle for a home that doesn’t meet all of your demands. Once you do find the right one, though, act quickly.
Decide what size down payment will fit within your budget. If you are unable to put down 20% or more than your monthly payment will be higher to cover the cost of private mortgage insurance.
You should work closely with your lender and realtor. If the realtor is not agreeable to you than get a new one. There is no shortage of them. Also, keep constant communication with your lender, letting them know where you’re at throughout the process, even if it means using your work breaks and lunch to make phone calls.
Get an Inspection
Always get an inspection for the home you are considering. This will give you an idea of the current physical state of the home and how much work will need to be put into it. And never get emotionally attached to a home. It will never return those feelings.
To make your first home purchase a success you must have conviction to buy and plan to live in the area for at least five years. Get pre-approved with a lender and develop a good working association with your realtor. Remember, they work for you. It may seem daunting at first, but if you stay committed during the entire process you will be able to buy the right home with confidence.
When it comes to being a landlord, one should know that it is not for the unprepared individual. This should be clear that being a landlord does not simply mean that you will be taking the rent and... More
Becoming a landlord is a major deal and no one can simply get up and think, “well, yes I think I should be a landlord and rent out my flat.” If you are thinking that you would like to be a landlord,... More
Landlords and aspiring landlords, do not become as such, without guidance and advice. There is a lot that goes into being a landlord nowadays; in fact, there is so much to learn that it often confuses... More
Renting out an apartment or a house can become a constant revenue source for landlords, but at the same time, it gives rise to several problems. It is a fact that high standards, a strict lease... More
If you are currently thinking of becoming a landlord only because it helps you have a constant stream of income, you should think twice. It’s not that you should not consider offering your property... More
When it comes to paying taxes, most individuals have no idea that they may be paying so much without needing to do so. The same goes for landlords. Why should you or any other landlord be paying more... More
When you own a rental business and start it from scratch, you know how important it is for your business to reach the people it matters to most. How else would your business flourish and blossom? It... More
For a landlord, it is of immense importance to ensure that they only let a qualified tenant to move in. It is however every landlord’s nightmare when they get tenants from hell who make the tenancy... More
There are many terms and concepts used in the realms of landlording, and when it comes to learning everything in the property business, most aspiring property owners find them in trouble. Most... More