You’ve planned the Big Day, now about that House…

Nov. 17, 2009 - PRLog -- You’ve planned the Big Day, now about that House…
For many couples, getting married and buying your first place together seem to go hand in hand. Buying a home for the first time can be scary, but as with anything else in life, the right preparation brings about good results.  Remember, the right home for you and your significant other is one you want and can afford.  Below are a couple of tips for every new home buyer.  Prepare a few months in advance, so that when you’re ready to pull the trigger on your new home purchase, you’ll be ready.
1.   Pay off debt- Eliminate high-interest credit card debt, even if this means you can put less money down for your down payment.  Credit card debt limits your ability to save and the amount you can borrow.  

2.   What can I afford?  This depends on two major factors: how much can you borrow and how much can you put down for a down payment.  As a rule of thumb, your annual mortgage, taxes, and homeowner’s insurance should equal about 28% of your gross income.  You also want to make sure that you factor in closing costs, which typically run about 3-5% of the home’s value.

3.   What about loans?  A first time home buyer with good credit and a steady job can find a loan with no down payment, but the more money you can muster for a down payment, the more loan options you’ll have available.  Typically, a 10-20% down payment is a good number.  Also, get pre-qualified before you start looking - it gives you an edge over other offers. Consider how long you plan on staying in your new home as this may also dictate the type of loan you choose.

4.   Finding the right home.  Get help. Hire a realtor. Unlike a listing agent, whose first obligation is to the seller, a buyer’s representative is working only for you.  Often times, the buyer’s reps are paid out of the seller’s commission payment. Once you’ve got your realtor, be picky, but not un-realistic; decide which features are most important to you.  

5.   Putting in the offer.  Decide when you can move, when is your lease up, can you sublet?  Insist on a home inspection and, if possible, ask the seller for a home warranty to cover defects within one year.

6.   Closing day.  This is the fun part - the day you sign your name for what seems like millions of times, and at the end of it all…the keys to your new home!

Buying your first home can seem confusing and stressful. It’s one of the biggest investments you’ll ever make; just remember to take your time and do your homework before putting in an offer.

If you would like more information on buying your first home, please visit my website www.JoshAndersonRealEstate.com or email Josh@JoshAndersonRealEstate.com.

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Josh Anderson is a business savvy, professional Realtor with a strong desire to cater to his clients’ particular needs. Josh’s market expertise coupled with his superior negotiating skills set him apart from the rest. www.JoshAndersonRealEstate.com