It could be exciting and thrilling for a first time home buyer in Phoenixville to make such a huge life decision of purchasing his very own home. But, despite the many assurances of a smooth home buying process as seen in many real estate blogs, websites, or magazines, a newbie should not take this process lightly. Buying a home is not simply choosing a home in open houses, discussing with realtors, transacting with the bank, signing papers, and finally moving in. Many important variables are involved including financial aspects, state laws, legalities, choosing a real estate agent, loans, taxes, and moving in just to name a few. Here are some helpful tips if on how to buy your first home that will let you get the bigger picture in the whole event of buying your first dream home.
How Much Can You Afford and How much is my Home Worth in Phoenixville?
Knowing and getting real with how much you can really afford is one of the most important factors to consider when buying your first home. According to financial experts, the total expenses for mortgage, taxes, and insurance should only eat up to thirty percent of your income. This is to make sure that other important aspects of your life like your personal needs, retirement, health, bills, etc. will not suffer. It is not wise to proceed with purchasing a big house that you will not be able to keep in the long run just because you were not careful enough to analyze how much you can realistically afford.
Hire The Best Real Estate Agent
The best person to rely on during the whole house buying process is an experienced and trusted realtor. Realtors will have all the answers to your questions in line with your house hunting. He will have enough knowledge of the real estate market. You are guaranteed to get different recommendations and suggestions depending on your personal preferences. You and your realtor just need to make sure that an open communication and clear understanding from each side is attained for you to come up with the perfect plan and strategies. Some are hesitant to hire a realtor because of commissions that could be as high as 6% of the house’s selling price, but there are many advantages of hiring one especially if you are a first time buyer. You may ask your friends and family for referrals to make sure that you get the service of a trusted real estate agent to sell my house in Phoenixville.
Looking for a loan could take longer than actually looking for a house because of the many complex processes in getting pre-approved for a loan. The term loan shopping will apply to you because you need to take a look at least three loan offers and discuss them with your family and friends before choosing one. But once you establish your loan, you should be able to gauge the price range of the houses that you can choose from. There are several loan companies across the states that you could contact prior to looking for a house, or you may choose to discuss loan matters with your local bank and see which will best fit you.
Buy When The Time Is Right
Buying a house at the right time will be very beneficial for a first time home buyer who wishes to close a very good deal. The real estate market has its ups and downs just like any other industry and knowing when prices are low will make you a very happy home buyer and in turn can help you to sell your house fast. The economic standing of the country has an effect to the real estate and it is best to discuss this aspect with your real estate agent as they sure have the knowledge on the real estate forecasting.
Once the financial, loan, mortgage has been determined, a first time home buyer can now splurge his time for the house itself. This is the most exciting part for newbies where they get to think of what type of house to get. One can choose from a traditional single or duplex family home, a condominium, townhouse, etc. Each home type has their advantages and disadvantages depending on what you want to achieve. If you are a young professional that intends to remain single for a little while, a townhouse or a condo could be the best fit for you, if you have plans of settling down soon, it may be wise to purchase traditional homes. Your professions, your orientation, your job, your future goals, your passion will be taken into consideration when choosing the house type, location, structure, etc. Some prefer to live in a house with modern architecture while others favor the traditional ones. What’s important is you know what you want for you, thus making it easy for both you and your realtor to break down your choices.
Even before you plan to buy a house it is important to save money as much as you can. A little sacrifice on petty unimportant things can go a long way. Remember that expenses do not end after you buy a house and move in. There are things to take care of like utility bills, repairs, upgrades, home association dues, insurance, etc. So save money every time it’s possible or better yet make it possible to save money.