Tips for First Time Home Buyers

Buying a home is a milestone for most of us. It is probably the largest purchase you will ever make and it should be well thought out and researched. A good realtor can help you through the process once you are ready to go out there and discover your dream home. However, until you are ready here are a few tips to consider when buying your first home.

1. TALK TO A LENDER

There are a great deal of grants and funding programs out there for first time buyers. When researching a mortgage don't only think about your budget in terms of your income limit for qualifying . There are many different options based on profession (grants for teachers, farmers, etc.) as well as the area of the potential house (whether it's in a rural area, high-poverty area, etc.) Research all the grants and funding options you are eligible for before you automatically decide you won't qualify for anything.

2. CONSIDER YOUR BUDGET.

When budgeting for the house, by all mean calculate the principal, interest, taxes and insurance; but don't forget to add in utilities, cost of commuting and upgrades. Contact the utility companies that service the house you are considering and ask for an estimate of what the cost will be, whether there are any budget plans available, etc. Will the gas budget for your car go up if you are moving further away from the places you frequently visit and your job? Write down your budget, including all of these expenses and see what kind of house you can afford.

3. MAKE A CHECKLIST

Buying a home is an emotional experience. You can easily fall in love with the first home you visit only to find out it lacks the items that you need later. For example, storage space is something first time buyers sometimes forget about. It's easy to get caught up in daydreaming about the pool in the backyard and forget that you need a place to store all your bikes and surfboards. Make a list of the items that are important to you before you go out on your search. This way you have a way to rate the homes you view.

4. LOCATION, LOCATION , LOCATION

This is something you simply can not afford to overlook. Consider the location of the neighborhood, does it lie within the city limits? This could affect your taxes, the school district and even your utilities. Location is also very important for resale. The house located next to a railroad track may be harder to sell than the house near the park. You may not always live in the first house you buy so always think about an exit plan. Most people move or buy a home every 7 years.

5. LOOK BEYOND THE STAGING

Pay more attention to the layout of the house and the structure itself. Ugly wallpaper and paint can be easily fixed later. Don't get hung up on the small details. Refer back to your checklist to keep you on task and look for the key points that will make this house a perfect home for you.