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By Mark Acantilado | Home Owner in USA, Mobile, AL

Buying Without Regret: Homebuying Tips for First Time Homebuyers

You only have one shot at making your first biggest purchase right—your real estate purchase—otherwise, it’s going to burden you until the mortgage has been paid off. For moneyed people, purchasing the wrong property isn’t going to be a problem but not for people without a lot of disposable income. It’s not something that can just be charged to experience. No need to fret though—here are a few hints on how to buy your first property smarter:
  1. Check the listings in your area and see if their prices fit your budget. How? You can do a quick search online on a wide range of real estate authority websites and online yellow pages, even that of the official site of National Association of Realtors, to find affordable listings in your area. Indeed, Google is definitely an easy tool for house hunting online.    
  2. Determine your budget. Don’t listen to mortgage bankers who’d advise you that you can actually spend up to 20 percent of your salary on a mortgage loan. Talk it through with your partner or your personal accountant. They’d probably have better things to tell you. Or, you can turn to Bankrate’s mortgage calculator for assistance.
  3. Determine the monthly expenses. Find out the monthly amortization, plus taxes, plus association dues and insurance. Check out Zillow for property tax information or call your local insurance agent to get a ballpark figure. Generally, just to give you an idea, the yearly insurance premium ranges from a few dollars short of $500 to over $1,000.
  4. Bear in mind that there are also closing costs to pay—fees that involve interests or origination fees, title transfer, taxes, and homeowners fees. Make sure to prepare yourself for these fees as well.
  5. Research about the real estate milieu in your target area. Talk to known real estate agents there and ask their opinion on how the local market is doing.
  6. Last but not the least, think of your long-term goals before buying a new house. Remember that a house is very high-maintenance and is quite costly. The maintenance alone can suck your bank account dry. It’s really important to determine how much you have and are willing to shell out.

By following these simple tips, you can avoid getting your home foreclosed and keep your bank account healthy. Careful planning can prevent you from making a terrible mistake at your first and probably biggest investment—your home.

Comments

By Trevor Curran,  Fri Jun 28 2013, 07:25
Great post Mark! Thank you for sharing! I wasn't clear what you meant on the 20% part recommended by Mortgage Bankers: are you saying the Bankers are advocating spending less money on a mortgage payment, or more?

As a rule, we Licensed Mortgage Loan Originators are required to provide clear counsel to a potential home buyer with regards to budgeting, affordability, and verifying information with their tax professionals.

Trevor Curran
NMLS #40140
By Santiago kensel Sanchez - CDPE,  Fri Jul 19 2013, 06:17
Thank you for sharing !

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