Making The Move: A Primer For First-Time Homebuyers

Although real estate experts have inundated us with advice for first-time homebuyers in the past few years, now that we’re slowly easing into a buyer’s market, it’s a perfect time to revisit those tips and tricks.

Do your research. Knowing exactly what you want is only half the battle. Getting exactly what you want requires quite a bit more work. Make sure you thoroughly do your research on neighborhoods, schools, different types of houses, comparable sales, etc.

It’s true what they say about location. It’s always preferable to buy less home in a good area than more home in an average area. The future value of your new home will depend a lot on its location.

Think to the future. Are you planning on having children? Are you looking to change jobs? Are you going to be making any large purchases such as a car, boat, etc.? Try to look a bit into the future and take these factors into consideration.

Don’t wait for the market to improve. It’s tempting to say, “Well, I’ll wait until interest rates go down and prices drop.” That kind of thinking rarely works out. Interest rates are starting to level off and, unfortunately, home prices haven’t gone down since the 1930’s.

Don’t try to get more than you can afford. If the mortgage on a home is too much for you, look elsewhere. It may be tough to pass on that dream home, but it’s much better than the alternative: falling deeper into debt or defaulting on a mortgage.

Keep your credit in good standing. Pay your bills on time, pay your bills on time, pay your bills on time. Late payments can play havoc with your credit and, conversely, may affect how much your mortgage will be. And remember: Pay your bills on time.

Don’t be emotional. Buying a home is a business decision. It’s also likely to be the biggest purchase you ever make. Be rational and logical. Making decisions based on your feelings is never a good idea.

For all professionals, referrals are key. If someone you know highly recommends a Realtor or a lender, take their advice. Real estate professionals are much like auto mechanics: The value of finding a good one is immeasurable.

Know what it means to be a Homeowner. Being a homeowner requires knowledge, maintenance, responsibility, and, at times, large expenditures. If you know any homeowners, ask them what it really involves. You may be surprised by what they tell you.

Because of the stabilizing interest rates and more homes on the market, many people will choose to buy their first home this year. If you’re one of those people, keep these tips in mind and you’ll be much happier when you finally move into your dream home. ∆