Getting into the real estate market for the very first time? It can feel overwhelming with so many decisions to make for what is sure to be the biggest financial decision of your life up until this point. Here are some things you should think about as a first time buyer.
Consider a Fixer Upper
Many home buyers want to purchase a home that is move-in ready. This means that there is nothing that really needs to be fixed with the home prior to purchasing it, and you can start unpacking immediately rather than focus on home repairs.
For your first home, do not write off the possibility of getting a home that needs a bit of work. Home improvements are an unfortunate reality of home ownership that you will won't be able to avoid, and you'll need to start doing them at some point.
In addition, opening yourself up to a home that needs some work could help save you some money off the initial purchase price. Everything is negotiable when a home is for sale, and problems with the home could be used to get you a lower price on the property that is within your budget.
Look Beyond Single Family Homes
It's possible that you are focused too much on the idea of a single family home. While the idea of having a brick house with a yard was something you've been dreaming about, the cost to get one may be out of your budget initially.
Condos and townhomes can often be just as nice as a single family home, but smaller in square footage which makes it more affordable to buy. In addition, the shared community space often means that building maintenance is taken care of for you, which may be ideal if you are not that handy of a person.
Figure Out Your Budget
Start by getting pre-approved for a loan to find out exactly how much money a lender is looking to give you for a home. Use this as a guide to determine your budget, knowing that there is a limit to how much money you can get for a mortgage. This can easily help eliminate some homes you may have been considering. Keep in mind that a pre-approval amount may still be higher than what you are comfortable with for a home budget, and be sure to factor in taxes, HOA fees, utilities, and home improvement costs as well.
Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.