Friday, August 09, 2013

A Basic Guide In Buying Your First House

Buying a house is a major decision. This is probably the biggest, single investment that you will ever make. You will be committed to making payments on your house for the long term. That is why you owe it to yourself to learn all about the home-buying process to make sure that you follow the right approach. Mistakes can cost you money, and you want to minimize them.

First of all, find out if you can really afford to buy a house. You will need money for the down payment and a total household monthly income that is about three times as high as your monthly mortgage payments. If you are not sure how much you can afford, contact a lender to get pre-qualified for a home loan. Doing this will give you a realistic picture of how big of a loan you can get. That is not to say that you should max out on your loan. If the price range of the type of house that you want buy falls below the maximum loan amount, you should have no problems with financing your purchase.

After that, decide on how big of a house you really need. What is or will be the size of your household? Small children do not take up that much space, but as they grow up, they will need more room. As you tour each house, think of your future needs and visualize the potentials of each house.

The best neighborhoods are usually in the best school districts. Do some research on school statistics in different communities. Homes in desirable locations hold their value better than houses in neighborhoods with issues. So, a good location is always a good investment.

Find yourself a reputable broker who is familiar with the neighborhoods that interest you. He can help you spot a good buy based on your criteria as soon as it hits the market. A good broker can help you look beyond the cosmetic appearance of the house and focus on issues that will affect your lifestyle. You can always change the paint if you do not like it, but it is much harder to change the floorplan if it does not suit your family's lifestyle.

As you are touring different houses, be sure to take a notebook with you. Jot down things about each house that you like and dislike. If it is allowable, take photographs or a video as you walk through the rooms. You will be seeing many houses, and it is easy to forget important details of each property. By jotting down notes and taking photographs, this will help you with recalling important details of the houses that spark your interest.

When you decide on a house, make a realistic offer. The seller will most likely counter with an offer higher than yours. Have in mind the final price that you want to pay and work toward that. If it looks like you will not get the house at the price that you want, you can either walk away from the negotiations, or you can ask for other things in the contract, like certain appliances or pieces of furniture that you like. Sometimes the seller is willing to include those just to make a sale.

These are a few basic tips that can help you make a smart home purchase. Just learn your market, and you will be able to score a good deal.

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