Buying Your First Home
The ultimate American Dream is to buy and own a home. So, whenever you decide to take the plunge, remember there are many factors involved before you can actually buy your first home.
The first and foremost is the finance for your new home. If you approach a lender for a mortgage, you should ensure that you pre-qualify for the mortgage. This will help you concentrate only on those homes that you can afford to purchase and not go for something beyond your reach. Pre-qualification will also help the deal to take to actually take place. There are many instances when a buyer cannot purchase a home because he does not have the required finances or the loan gets rejected. After pre-qualification, the other factor that you should take into consideration is the down payment for the house. If you have a less amount for down payment, this would increase the interest on your mortgage and you will end up paying higher monthly payments.
In addition, you will also have to pay inspection fees and closing costs that include loan origination fees, prepaid interest, application fees, appraisal fees, survey, title search and title insurance, homeowner’s fees, recording fees and attorney’s fees. Make sure you set aside enough money to cover the costs of these fees. There are also other costs involved in home ownership like utilities, insurance, property tax, repairs and services such as trash removal, landscaping and replacement of household appliances. Some are necessary while others depend on you. If you are planning to go a condo, you would have to pay association fees. It is a good idea to check the actual expenses from the previous owners or compare with a similar house in the neighborhood.
In addition, crime rates, taxes and transportation, and town services are other things to consider when going for your first home. Look for a neighborhood where prices are on the rise. This means that the area is popular with families because of the services it has to offer.
Lastly, always take into account the resale ability of the house. There will be a time in future when you would like to move and if the resell value is good, you will benefit. Therefore, the more research you put in today, the better your decision will look in the years to come.
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