You only have one shot at making your first
biggest purchase rightâ€”your real estate purchaseâ€”otherwise, itâ€™s going to
burden you until the mortgage has been paid off. For moneyed people, purchasing
the wrong property isnâ€™t going to be a problem but not for people without a lot
of disposable income. Itâ€™s not something that can just be charged to
experience. No need to fret thoughâ€”here are a few hints on how to buy your
first property smarter:
- 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. Â Â Â
- Determine your budget. Donâ€™t listen to mortgage bankers whoâ€™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. Theyâ€™d
probably have better things to tell you. Or, you can turn to Bankrateâ€™s
mortgage calculator for assistance.
- 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.
- Bear in mind that there are also closing costs to payâ€”fees that
involve interests or origination fees, title transfer, taxes, and homeowners
fees. Make sure to prepare yourself for these fees as well.
- 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
- 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. Itâ€™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 investmentâ€”your home.