The homeowners’ experience is only an enjoyable one if you are financially prepared to take on the challenge.
Many people believe home ownership is similar to renting and they are partially correct. The added perks to owning a home such as remodeling, updating the appliances, and housing your pets often come with a number of responsibilities. It’s important to take consideration of these added responsibilities such as home maintenance, mortgage payments, and taxes.
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Questions to Ask Yourself Before You Buy
Are you ready to buy?
It helps to have realistic expectations set prior to your home search. An understanding of what home ownership entails is crucial. Planning for years of maintenance and financial commitment should be taken into consideration when purchasing a home.
How much can you afford?
Financial commitment is one of the most important aspects of the home buying process. Without professional guidance, a home purchase could quickly turn from a blessing to a burden as a portion of your income is reallocated to your mortgage payments. To avoid this situation, a modest home purchase would be wise and plan for the “dream home” later down the road.
What is your debt-to-income ratio?
One of the first things lenders will look at is how much debt you have relative to your income. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. What 32% of your income will buy depends on where you want to live. In rural areas for example, it can buy a very comfortable home on a large lot. In highly sought-after urban areas however, it may not even buy a 400 square foot studio apartment.
What do you want?
Do you like the idea of cleaning your own gutters? Do you shudder at the thought of lawn care? Would obeying rules about when you can have your garbage cans out bother you? The answers to these questions can help you narrow your search for the right type of property for you.
We Can Help
Tim and his team are dedicated to helping you find the ideal home to fit your needs. We want you to find the home that will make you happy and successful in real estate ownership. Working with Tim to buy your first home ensures a purchase that works for your expectations and financial situation. As a result, you’ll have a successful transaction that you’ll be sure to be proud of.
Keep your objectives in mind when visiting a home. Sometimes the idea of owning a home can overwhelm your practical sense, so keep your feelings in check. Keep a list handy of the features that you need and want in a home, and judge each home by the list instead of by details that could distract you from your goal. By personally reviewing the pros and cons of your prospective purchases, Tim will help you identify the home that is right for YOU!
Make the offer. More often than not writing a competitive offer challenges many first-time home buyers. Tim is happy to prepare the paperwork and review it with you before submitting it. Remember, the seller may reject or counter your offer, so even at this late date, avoid setting your heart on the home you hope to own. You may have to write a deposit check to the seller’s broker that proves the seriousness of your offer.
Coordinating inspections is an additional layer of complexity when purchasing a home. Home inspectors will check for signs of harmful materials like asbestos, lead paint and mold. They’ll also check for evidence of pests, faulty wiring and leaks. This is a crucial part of the home purchase. Not getting an inspection done means that you could be stuck purchasing a home with a serious problems and no recourse other than to pay for its removal. Inspections will cost a few hundred dollars, but again, this is more than worth it in the end. There are several inspectors in the area that we’d be happy to recommend.
Do a final walkthrough before closing the deal. Tim is happy to do this with you to make sure that everything agreed upon is completed prior to the final signing.
From the first interview that determines your top priorities to the moment that you receive the keys, we can help you with the complicated process of buying a home. Don’t hesitate to contact Tim or his team to find out more about how we can make the home buying process easier!
Contact us for more information about first time home purchasing.