| Buying your first home is a big step and one that is | | | | with expensive repairs or hidden defects. |
| likely to impact your financial future for years to come. | | | | 3. Obtain Insurance Quotes Prior to Making an Offer. |
| Follow these steps to determine where to begin. | | | | Obtain insurance quotes on each and every home of |
| How to Make a Good Buying Decision | | | | interest; two homes of the same age and quality of |
| 1. Establish a Realistic Budget. The costs of owning a | | | | construction can differ dramatically on the cost of |
| home are more than meets the eye. In addition to | | | | insurance coverage due to prior claims, neighborhood |
| mortgage, taxes and insurance, a little savings should | | | | and other factors. Calculate the total cost of home |
| be set aside for maintenance and unexpected | | | | ownership, not just the minimum monthly mortgage |
| emergencies. Remember, you will eventually need to | | | | payment, when comparing homes. |
| repair or replace many items in the home, including | | | | 4. Verify New Tax Rates. Don't assume the tax rate |
| appliances, HVAC and roof. | | | | enjoyed by the current homeowner will be your new |
| 2. Buy What You Need. While real estate is often | | | | tax rate; many areas have caps that limit the amount |
| considered an excellent investment, it's important to | | | | of property tax increases at any given time. If the |
| purchase only as much home as you actually need. | | | | seller has owned the home for several years, it is |
| Bigger isn't always better; sometimes it's simply more | | | | entirely possible the new tax rate may be substantially |
| expensive. Higher taxes, bigger insurance bills and | | | | higher despite the recent reductions in sales price. |
| more maintenance can eat away at even the best | | | | Where to Begin If you have been contemplating the |
| budgets. | | | | purchase of a home but aren't sure where to begin, it's |
| 3. Plan for Growth. First-time home buyers can also be | | | | actually easier than you might imagine. Just follow |
| too modest when it comes to purchasing their first | | | | these simple steps to get started. |
| house. If you intend to start a family, you may quickly | | | | 1. Sit Down and Put Two Headings on the Top of the |
| outgrow the home. Plan for growth to ensure that you | | | | Page: Needs and Wants. Allow each person in the |
| will be as happy in the home tomorrow as you are | | | | family to offer ideas about what is needed versus |
| today. | | | | what is wanted. Common examples of needs might |
| 4. Understand Appreciation. Although you don't want to | | | | be a specific number of bedrooms or bathrooms for a |
| base the purchase of your home solely upon | | | | growing family, a fenced yard for the dog and children |
| appreciation, it's equally important to understand how | | | | to play, or a shed for holding gardening tools. Common |
| the future value of your home is likely to impact your | | | | wants might include a pool, a porch or a corner lot. |
| ability to move up later in life. When the time comes to | | | | Allow the needs and wants to reflect your specific |
| sell, rent or exchange the current property, a home | | | | desires and goals for the family for a minimum of five |
| with long-term appreciation provides greater buying | | | | to seven years into the future. |
| options in the future. Search for neighborhoods | | | | 2. Get Prequalified. Find out for certain how much you |
| expected to rise in value over time. | | | | will be able to borrow and at what rate. Ask if you are |
| 5. Work with a Reputable Agent. A great real estate | | | | eligible for any special programs to help reduce |
| agent or broker is often worth his or her weight in gold, | | | | down-payments or other costs. |
| which is why you will typically find that investors would | | | | 3. Shop Online. View properties in your price range and |
| never think of going it alone. Unfortunately, many | | | | desired zip code to see what is available. Take time to |
| first-time buyers are under the mistaken impression | | | | explore nearby neighborhoods to see if they will also |
| that they can save money by helping the seller | | | | meet your needs. Sign up for email notification of new |
| eliminate or reduce the commission. Research shows | | | | listings in order to keep track of what is on the market. |
| that this is rarely the case. Most agents help negotiate | | | | 4. Find an Agent. By this point you will begin to notice |
| a lower sales price and ensure that funding, necessary | | | | that some agents tend to specialize in your desired |
| paperwork and other important legal considerations | | | | area of interest. Set aside time to call and email for |
| are all taken care of.How to | | | | more information. Remember, the agent is one of the |
| Avoid the Most Common Buying Blunders | | | | most important factors in the buying process. Many |
| 1. Get to Know the Neighborhood. One of the biggest | | | | specialize in certain areas, work with specific lending |
| mistakes new home buyers make is to fall in love with | | | | programs or have other expertise that can make the |
| the home without taking the time to critically evaluate | | | | difference between finding the home of your dreams |
| the neighborhood. Do your homework to make sure | | | | versus living through a nightmare.This article and any |
| schools, amenities and other important factors meet | | | | information contained herein is intended for |
| expectations. Remember, it's a decision likely to impact | | | | informational purposes only and should not be |
| your entire family for years to come. | | | | construed as legal advice. The publisher will not be |
| 2. Always Obtain an Independent Inspection. Don't be | | | | responsible for errors or omissions or any damages, |
| penny-wise and pound-foolish by trying to save a few | | | | howsoever caused, that result from its use. Seek |
| hundred dollars on an inspection. In fact, it's typically a | | | | competent legal counsel for advice on any legal |
| good idea to pay out of pocket for additional | | | | matter. This document is not intended to solicit |
| inspections to ensure that you won't be confronted | | | | properties currently for sale. |