RealEstateBuySellExchange.com realizes buying your first residence may be a very intimidating event. However, it can also be extremely exciting and economically rewarding if purchased correctly.
If you are concerned about buying a home is the right decision, it most likely is if you follow the items listed below. Knowing you made the right decision when it is time to own your first home is very rewarding.
Buying your first residence is a dramatic step in many people's lives. Considering a residence is one of the most expensive items a person buys, proper foresight is needed to keep the purchase on the positive track. Follow the steps below and rather than being intimidated, you can turn your residence into a lovely home.
1) First, ask yourself do you really want to be a home owner. Many people are content living in apartments or other arrangements and it may not be right for everyone to own their own home. Take for example if you are going to live in the area for a short time. If you plan or residing less than 3-4 years in one area, most real estate experts say it might be smarter to rent. The initial costs, plus the selling costs could make it not economical for you to be an owner on short term basis. Also, when you consider that real estate does fluctuate in price, it is best to have a larger window of opportunity if you decide to move. Buying a home and then selling it within a few months can be profitable under the right circumstances. However, home buyers may need a bigger window of opportunity to sell just in case when it comes time to sell the real estate market is temporally down.
2) Select a lender that seems to be helpful and get Pre Qualified. At first thought, most new home buyers would never consider getting pre qualified before they even look at a single home. The fact is, the prudent buyer realizes what they economic restrictions are and then you can look into buying that dream first home. By the way, this is a good policy to keep for buying homes 2-100. While you are working with the lender, make sure you ask the expert about all the various types of mortgages and down payment requirements available. Regardless of market conditions, there are always various options and multiple mortgage programs available, but you must ask.
3) Now you know your financial limitations and determine what area your might consider to live within. Even if you lived in the same town since birth, have a friend or neighbor drive you through as many home developments as you can stand. The more you look, the more you can determine where your first home should be located. If you plan on having a family or already have children then determining what schools are appropriate is a big decision.
4) Reality must set in and it is time to determine what is necessity and what is not necessity in the new home. Many people, once they get pre qualified create an unrealistic wish list that will not fit into their budget. Homes come in all shapes, sizes, styles, appliances, accessories and hundreds of other features. It is great to get the most value for your hard earned dollar, but remain realistic. This will save time. A good policy is to make a list of the absolute necessities and a second list of what would be a dream come true of those items were included in your new home.
5) Now you are determined to be a buyer, armed with a financial reality, know the area you would prefer to live in and a realistic list of home features, now it is time to talk to a qualified realtor. There is no reason to waste the time of an expert until you have accomplished items 1-4 above. You would never consider going to a doctor and wasting their time by asking for a heart transplant before you reviewed all your options or even determined if you needed an operation. Taking the time of a real estate expert is not smart if you are not a sincere buyer and have a clear idea what you want to buy. Window shopping is fun and it fills a day, but remember, the expert realtor works on commission and cannot waste time with people who really have no idea what they want, what they can afford or where they want to live.
The above are the five easy steps to making a residence into your first dream home. And please do not feel odd or intimidated in any way because it is your first home purchase. The above rules will save you thousands if you follow them for all your real estate purchases.
Another key item to remember is you (your family) are the buyers and the person(s) to reside within this home purchase. Being pushed or pressured into buying a home you will not be satisfied in years to come is an unfavorable decision. This is a serious decision and you should be pleased with your purchase from day one. You are the buyer, if your realtor and you cannot get along and find that dream home with the realistic steps 1-4 taken above, then next step might be to shop for a new real estate expert.
Please note: Yes, there are up and down market cycles for most real estate areas in the world, however if you find that right house within your economic reach and have the items you want, BUY IT NOW. Even though there are millions and millions of homes when the "just right" home comes along, the buyer who waits usually only gets to tell their friends about the great house that got away.