Are You A First time home buyer?
If so, here are 5 questions you need to ask.
First time home buyers typically pick a home before lining up financing, but experts say it should be the opposite.
Buyers, and especially first time home buyers, often call a Realtor first who will then suggest contacting a few loan/mortgage officers that the Realtor has a good working relationship with. Only after speaking with a reputable finance person will the first time home buyers truly know what they can afford. And be sure to look at what the monthly payment will be - including your taxes, insurance and any HOA fees to get a complete picture of what your monthly payment will be. I always advise first time home buyers to take the difference between the mortgage amount and what they are currently paying for their rent and put it in a savings account. Don't touch it and two things will happen. You will know that the mortgage payment is comfortable for you and you will have a chunk of money set aside for a larger down payment, to cover your closing costs or towards any improvements you may want to make on the home.
How much can I afford?
By speaking with a loan officer first, first time home buyers will know how much their monthly payment will be. Also the loan officer will be looking at your income, your debts and your credit score. All of these combined will determine how much money a bank will loan first time home buyers. Caution, you may qualify for more than what you are comfortable paying every month. You want to make sure that you can still have a life, even after paying all your bills.
What are my other housing costs outside the loan?
Know what your closing expenses are and which ones can be rolled into your mortgage loan and which must be paid out of pocket. Typically you will need to have some cash readily available for your down payment with the purchase contract. Additionally you will have a loan application fee, an appraisal fee and your inspections fees. These are all expenses that are paid by you, out of pocket and before the house closes.
There are also some closing expenses you will have, and depending on your loan and the property you purchase you may finance up to 6% of your purchase price above the purchase price to cover these costs. Typically this will be items such as attorney fees, title updates and the re-reimbursement of expenses the seller has paid but not yet used. Some examples would be property taxes or fuel oil. Your attorney will be able to provide you a break down of these closing costs.
And once you have closed on the home, you will have home maintenance and unexpected repairs. No longer will a broken furnace or stopped up bath be fixed by your landlord. You now are responsible for these items. Not to mention all the new shinny toys and tools you will need or want for the new home. In fact when we purchased our current home, I had to ban my husband from the home improvement store. He couldn't go without spending at least $100...
What do I need in a house and a neighborhood?
Your Realtor will conduct an intensive consultation with you (or they should. If they don't take the time to really get to know you, your family and what your wants and needs are for your new home, you should really ask another question - and that is how can they help me find a home if they don't understand not only what I am looking for, but why it is important - but that is another blog).
During this appointment, they will be asking questions so they have a clear understanding as to not only what you are looking for, but also why that is important. You will also want to have a conversation about where you are looking to live, what style home, what size yard, what school district etc. This will help you find and look only at the homes that will best meet your needs.
Will this house fit my long-term goals?
Take some time and think about why you are looking to buy a home. Is it because you want to be building your wealth and not your landlords? Or because you want the freedom to have the pet you want or to paint your bedroom purple without having to ask permission. Do you plan on growing your family in the next few years? Or downsizing? Most people think when they are buying their home, that they will stay there forever. But reality is that you will probably move every 5-7 years. Be careful that you are not so focused on "will this house work for me 20 years for now" that you don't look at what meets your needs now.
Am I truly prepared to be a homeowner?
Make sure you understand what's involved. You should ask yourself before buying if you have good spending habits. Can you budget for regular maintenance and repairs? Are there improvements that you will want to make - do you have the skills or resources to make these improvements? Home buying will always be a wise financial move - keeping in mind this is an investment that you have an immediate return as it provides you a place to live - a home to call your own... Owning a house is still better than renting, you should absolutely be able to find a great house for what you can afford.
Meet The Ultimate Team at
Keller Williams Realty Saratoga Springs
Doing Business Just A Little Bit Differently is more than our motto... it is the foundation of our business. Working in the communities where we live is important to us. We are committed to providing our clients - both buyers and sellers - the most professional service. It is our responsibility and our promise to our clients to be Real Estate experts.
We are experienced Realtors - having done countless transactions, we know how to get the job done right, the first time around. We promise to negotiate the best terms for you, with the least amount of stress and disruption to you and your family. Communication is key to a smooth transaction and we know that is the only professional way to do business. The Ultimate Team at Keller Williams Realty will work together with you to make the purchase or sale of your home a smooth and pleasant experience.
Carol and Kris live and work in the greater Glens Falls area. We know the real estate market is constantly changing, and it is critical to be knowledgeable about the communities in which we work. Whether you are thinking of buying, selling or investing in any Real
Estate, let The Ultimate Team at Keller Williams Realty Saratoga Springs show you how we are doing business just a little bit differently.
Meet The Ultimate Team at 
First time home buyer? 
Doing Business Just A Little Bit Differently is more than our motto... it is
the foundation of our business. Working in the communities where we live is
important to us. We are committed to providing our clients - both buyers and
sellers - the most professional service. It is our responsibility and our
promise to our clients to be Real Estate experts.
We are experienced Realtors - having done countless transactions, we know
how to get the job done right, the first time around. We promise to negotiate
the best terms for you, with the least amount of stress and disruption to you
and your family. Communication is key to a smooth transaction and we know
that is the only professional way to do business. The Ultimate Team will work
together with you to make the purchase or sale of your home a smooth and
pleasant experience.
Carol and Kris live and work in the greater Glens Falls area. We know the
real estate market is constantly changing, and it is critical to be
knowledgeable about the communities in which we work.
Whether you are thinking of buying, selling or investing in any Real Estate,
let The Ultimate Team show you how we are doing business just a little bit
differently.
