Your First Home
Hello and welcome! Chances are you're here because you're considering owning a home or have decided to already. Good choice. Outlined on this page are resources for helping you obtain that dream. Simply click on the links below for more information. And remember, you don't pay a Realtor to help you buy. So when it comes time to move forward, don't be shy.Still Renting? Think twice.
Home ownership is one of the most secure investments you can make. How much do you pay for rent? Each month, this could be contributing torwards your financial future rather than your landlord’s. Not to mention the potential tax savings and reduction of mortgage balance. Check out the below and then click here to learn how much you will save by owning.
TOTAL RENT PAID IN:
| 1 year | 2 years |
3 years |
4 years |
5 years | |
| Monthly |
|||||
| $1,200 |
$14,400 | $28,800 | $43,200 |
$57,600 | $72,000 |
| $1,500 |
$18,000 | $36,000 | $54,000 | $72,000 | $90,000 |
| $1,700 |
$20,400 | $40,800 |
$61,200 |
$81,600 |
$102,000 |
You've decided to own. Now what?
- Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income.
Click here for a home affordability calculator.
Develop a wish list of what you'd like your home to have. Then prioritize the features on your list.
- Select three or four neighborhoods you'd like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
Click here for community profiles.
Click here for school profiles
- Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney's fee, and transfer fees average between 2 and 7 percent of the home price.
- Get your credit in order. Obtain a copy of your credit report.
Click here to request a credit report.
- Determine how large a mortgage you can qualify for. Also explore different loans options and decide what's best for you.
Click here to learn about your financing options.
- Organize all the documentation a lender will need to preapprove you for a loan.
- Do research to determine if you qualify for any special mortgage or downpayment assistance programs.
- Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
- Find an experienced REALTOR® who can help you through the process.
Click here to contact one.
Words of Wisdom
- Be picky, but don't be unrealistic. There is no perfect home.
Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
- Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.
- Don't wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking. If you don't have a lender, we can provide with some lenders that we recommend who are honest, forthright and can work with you in designing just the right kind of home loan to match your needs and financial requirements.
- Don't ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
- Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
- Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you'll buy as well as type of mortgage terms that suit you best.
- Don't let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you'll have no money left for maintenance or decoration or to save money for other financial goals.
- Don't be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.
- Get help. Consider hiring a REALTOR® as a buyer's representative. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. And often, buyer's reps are paid out of the seller's commission payment.
The Mistakes
- They don't ask enough questions of their lender and miss out on the best deal.
- They don't act quickly enough to make a decision and someone else buys the house.
- They don't find the right agent whose willing to help them through the homebuying process.
- They don't do enough to make their offer look good to a seller.
- They don't think about resale before they buy. The average first-time buyer only stays in a home for four years.
