Home Buying in 07033>Question Details

MIK Rodriguez, Home Buyer in 07029

what is the main check list for a first time buyer?

Asked by MIK Rodriguez, 07029 Mon Oct 24, 2011

I need to know everything about buying a home for the first time, is it better than rent?

Help the community by answering this question:


1. Figure out how much you make monthly after taxes. Take 1/3 of this amount. Write it down. Make sure you don't forget it. Now find an online mortgage calculator. Use the current 30 year fixed interest rate for good credit buyers (4% today), and enter in the taxes of properties you see in the area, and enter in a home insurance amount of $1000 per $200,000 value (as a ballpark). (collectively this insurance and your taxes are referred to as 'escrow') Enter in the down payment you plan on using. Now start plugging in purchase prices that seem to be in your housing choices. Whatever purchase price yields the number you wrote down should be the upper end of your budget.

2. Are you ok with the kind of homes that you can afford? If so, continue to step 3. and so on for all 'yes', otherwise return to landlord relations.

3. You need to decide which type of home you are thinking about..condo, multi-unit, single family, mobile home, whatever. Are you prepared to deal with issues (a.k.a. money) that may arise with the functioning condition of a home while you own it? This includes both physical maintenance and cash layout for repairs.

4. Can you accept that your home may never go up in value, and perhaps may decrease in value?

5. Find a buyer's agent who knows what they are doing. How? Have a conversation with them and observe their character. Then ask for references. There is no reason not to use one.

6. Do you want to hang a giant pirate flag from your roof and paint a drunken leprechaun on your garage?

Welcome to home ownership. It's not for everybody, but for those who take the plunge it's a beautiful display of the adage, "what you put into it, you get out of it"
1 vote Thank Flag Link Thu Oct 27, 2011
The main check list is as follows:

1. Do you want to buy a home?
2. Can you afford to buy a home?
3. Do you want to buy a home that you can afford?

To answer your second question, owning isn't necessarily better or worse than renting.

Almost all of us in real estate own property. We believe in home ownership, and we believe that housing is a good long-term investment. Very few residential real estate agents who can afford to buy choose to rent.

But what really matters is, what's right for you? Frankly, I think that you shouldn't be talked into, or convinced to buy real estate. If you want to buy, then, you should pursue buying. If you have doubts, well . . . in my experience, people who commit to things like buying homes see those doubts grow into resentments.

Prices are low right now, interest rates are at historic lows, and if you have any confidence in your local economy at all, then rents will certainly go up over time.

But none of this matters if you have doubts about buying a home. Maybe you don't feel committed to the neighborhood, or expect life changes that will make you want to move sooner rather than later.

So, it all comes back to #1. And if the answer is, "Yes," then consider that a real estate professional might have ten or twenty years' experience, and you can't cram all that knowledge into a check list!

All the best,
3 votes Thank Flag Link Thu Oct 27, 2011
Here is my personal home buyer's checklist: http://realterrific.com/index_files/homebuyersadvice.htm
I hope this is helpful.

2 votes Thank Flag Link Mon Oct 24, 2011
Did you buy a home yet? If not can you tell us why? We value your input. Regards,
1 vote Thank Flag Link Mon Feb 20, 2012

Send an email or call and I will send you a first time home buyers handout that I had generated to answer many of the inital questions about the process of buying a home.

I am sure that you will have more questions and we can discuss.

John Sacktig
Orange Key Realty
1 vote Thank Flag Link Mon Oct 24, 2011

WOW tall order...

What type of information do you want? How to go about looking for a home, how to get financing, where to live, hwow does the process work?

I have prepared a brochure with the entire buying processs from looking at homes to closing. If you email me I will be happy to send it as a link in Word or PDF format.

1 vote Thank Flag Link Mon Oct 24, 2011
Hey MIK,

I work with a lot of first time buyers so I put together a list of things you should prepare to do before buying a home on my website. Hope the 10 Ways to Prepare helps!
0 votes Thank Flag Link Thu Oct 27, 2011
Hire a Real Estate Agent "Check" That was easy, not to mention it was free since your the home buyer. The seller of the home will be paying the commission.
Web Reference: http://www.sjrates.com
0 votes Thank Flag Link Thu Oct 27, 2011
first thing i would do, is to contact a lender to see where i stand financially, what can i afford?? and how much money in my reserves will i need to close......then its a matter of finding a Realtor, that is available to work within your time frame, to help you find a home based on your criteria, and guide you through the buying process. as far as renting or buying..it is really based on your current situation....you seem young in your avatar..your best scenario would be buying something,rent it out,while you live at home with your parents..this would be the best choice..and a great investment for your future...however regardless of the present economy and market conditions....i would rather pay my own mortgage, and build my equity. than the landlord's...since the 3 basic essentials of food,clothing, and a roof over your head..will always go up over time, and the current market conditions are the best ever to buy..plenty of inventory, less qualified buyers, low interest rates....by the time you are older you will have a solid tangible investment, and equity..to offset the doomsday social security bankruptcy scenario, which has been predicted for your generation.........on the other hand if you were older collecting social security, on a fixed income...and you and your wife were left in a 4 bedroom house, since the kids have all grown up and moved on, due to the escalating costs of homeownership, and rising property taxes...then renting might be a better option, as opposed to buying. good luck!!
0 votes Thank Flag Link Mon Oct 24, 2011
Mik, RENTING MEANS YOU CAN BE FLEXABLE ...BUYING WILL BUILD YOU EQUITY.... here it is a good realtor...a good attorney a good mortgage rep thats to start the buying process, if you need more help reach out to me @ (908)-577-8184 John Bancey Realty Executives Kenilworth NJ 515 Springfied Road 07033. http://WWW.KENILWORTHNJREALESTATE.COM
0 votes Thank Flag Link Mon Oct 24, 2011
MIK... This is really a lot to cover in a short answer!.....renting vs. buying depends on your circumstance....consider things such as how long you intend to stay in the home, the amount of rent you will be paying, and the loan amount you are preapproved for. My website has a 'calculator' page on it which will assist you in determining when you are better off to rent vs buy. There is also a 'buyer's guide' there which you can download for your use under the buyer's tab....this provides a lot of information to you regarding what to look for in an agent, what an agent does, steps in the buying process, etc.......hopefully it will be of help to you. Please feel free to contact me with any questions you may have.....I'm not in your area, but will be glad to assist with any general issues.

Good luck in your home search!
0 votes Thank Flag Link Mon Oct 24, 2011

Purchasing your first place can be a bit over-whelming for sure. You want to surround yourself with an experienced "team" -- Realtor, Mortgage Rep, Attorney, Home Inspector. These people are all going to be working together on your behalf -- so select people that you have confidence in and are comfortable with. I usually start with a "Buyer's Consultation" at my office -- before we head out to see any houses. This is time well invested -- I'd be happy to set up an appointment for you. At the top of your list, though, will be answering "how much can I comfortably afford". Contact me if you'd like more information.

Marilyn Holda-Fleck
Prudential NJ Properties
0 votes Thank Flag Link Mon Oct 24, 2011
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