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Purchasing your first home is a big step that comes with some serious decisions.
Unlike buying a laptop, stereo, or car buying a home is an investment towards
a settled life and future. Although advertisements make buying a home seem simple
it is not so unless you have money saved up, have won a lottery, or inherited
a huge sum of money.
One of the keys to making the homebuying process easier and more understandable
is planning. In doing so, you'll be able to anticipate requests from lenders,
lawyers and a host of other professionals. Furthermore, planning will help you
discover valuable shortcuts in the homebuying process.
When you decide to invest in a home you need to:
1. Whether you are a first-time homebuyer or entering the marketplace as a
repeat buyer, you need to ask why you want to buy. Are you planning to move
to a new community due to a lifestyle change or is buying an option and not
a requirement? What would you like in terms of real estate that you do not now
have? Do you have a purchasing timeframe?
Sit down and think what you want in a home and where you want to live. Decide
on whether you want a flat, a suburban home, or a row house. Think not just
of the present but future needs like a growing family and expanding space needs.
Find out about schools, colleges, libraries, playgrounds, doctors, hospitals
and grocery stores in the neighborhood.
2. Nearly 80% of home searches are done today on the World Wide Web, you can
 browse through real estate listings
and view photographs of available homes and neighborhoods. Make a short list
of possible buys and then set out to view the properties. Take along a family
member or friend as two sets of eyes are better than one.
3. Homes and financing are closely intertwined. Think about a down payment,
this can be between 3-20% depending on the bank you are availing a home loan
from Ads that indicate a 100% financing are not applicable for everyone. In
general, the higher the cost of the home the larger the down payment required.
The good news is that over the years new and innovative loan programs have evolved
which require a 5 percent downpayment or less. In fact, a number of programs
now allow purchasers to buy real estate with nothing down.
4. In addition to a down payment you will need funds for: closing costs; insurance;
taxes; home inspection and appraisal; utility deposits; advance mortgage payments;
and moving expenses. Create a monthly savings target and put the money away
in a separate account.
5. Plan your finances and figure out what amounts you can afford to pay towards
mortgages. Create a earning and expense spread sheet. Analyze your lifestyle
and determine where you can cut back and save money that can go towards a fabulous
home. Think about shopping around for more affordable car and health insurance;
cutting back on eating out, unnecessary shopping, and travel; trim everyday
costs by buying groceries at places that offer competitive prices and carrying
coffee and lunch from home instead of buying lunch each day.
6. Get a realtor. Buying and selling real estate is a complex matter. In this
maze of forms, financing, inspections, marketing, pricing and negotiating, it
makes sense to work with professionals who know the community and much more.
Those professionals are the local REALTORS® who serve your area.
How do you choose? Click
here
7. Make investments that are likely to provide high returns with low risk.
Learn how to make money grow steadily.
8. Try not to run up bills on credit or debit cards. Lock up the cards and
only use them in an emergency.
9. When shopping for a mortgage do a comparison of different finance options;
get a loan with the best possible terms. If you maintain a good credit report
and score you will reap many benefits.
10. Surf the net and read the many articles and tips n purchasing a home written
by experts in finance and real estate. Knowledge is always a good partner in
any venture.
For more information on buying a home Click
here
Buying a home must be done with care. Always choose a home that fits within
your budget. This decision will help you manage your finances without going
bankrupt. Even if loans are easily available remember you need to pay it back
with interest so always settle for comfort rather that choose a prohibitively
expensive property that becomes a huge financial burden.
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