Buying a home is no easy task. If you are not careful in planning, the dream of becoming a first time homebuyer can turn into a financial nightmare.
Jeremy Walsh Real Estate is here to help your dreams come true by providing you three tips on how to avoid detrimental mistakes as a first time homebuyer. Read now.
It is always important to read the fine print and gritty details before you buy a home. Being a newbie, no matter how cautious or smart of a homebuyer you may be, could still make you uniquely vulnerable to the complicated home buying process.
The last thing you want to do is dig your own grave of debt. What you want is to buy and build financial security with a home purchase.
Here are ways to save you from debt disaster:
The first thing you need to do is take a look at your income and expenses to reveal truly what you can and can’t afford. You will want your mortgage payments to be something you can comfortably afford to pay every month for the next 15 to 30 years. Never purchase a home you know you will be scrapping for money every month to pay. You have to crawl before you walk. Even if you do not buy that big house on the hill now, you can afford it someday and you will be able to thank your first home for that.
Make a budget for yourself to help you afford your first home. List all income, including your wage, investments and expenses. This will give you an idea about how much you can afford every month, even though this will only provide you a snapshot of your financial picture. There will come times when unexpected costs will come up, you can prepare for this by studying long-term your financial habits. You may not be able to predict the future but you can certainly make realistic expectations and cut down on certain expenses by your own choice.
Once you do that, list what you need and want in a home- this includes both bedrooms and your ideal community.
Next thing you need to do is perform a credit check before you start the home buying process. That three digit score could be the difference between becoming a homeowner rather than remaining a renter. Your credit report will show how consistent you are about making payments on time, what kind of accounts you have open, and how long you have had them open.
When your score is low, you lower your chances of being granted a loan to purchase your home. Get a report from credit reporting agencies like Experian, Equifax and TransUnion.
By reviewing your credit report you may even find errors you can remove to improve your score. CNN money conducted that found about 79% of reports have some kind of wrong information and 25% have seriously damaging errors.
You should review your credit report at least once a year.
Once you get a clear idea of your own financial status, it is time to look at the big picture. You have to always know in your mind the housing market is not static but it fluctuates.
Sometimes it is in favor of homebuyers and other times it is more in favor to home sellers. It all depends on supply and demand. Desirable housing could be scarce or in surplus.
When supply is high and more homes are available, this is when you want to buy a home. Other factors to look at are interest rates, consumer confidence and the overall condition of the economy. You can keep up with these factors by reading newspapers and magazines focused on the real estate market such as the Wall Street Journal and The National Real Estate Investor Magazine.
If you have any questions on buying a home or selling a home, please contact Jeremy Walsh Real Estate by calling 443-610-5722 or click here today!
You need to be exclusively represented and have Jeremy Walsh (located in Baltimore, Maryland) on your side to handle all of the important details for you!
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Source: 10 First-Time Homebuyer Mistakes