Buying a home is the biggest first step that a person can take towards the rest of their life. Indeed, the stakes feel high because in fact they are; a home is the single largest investment that many individuals will ever make. While there is no doubt that the pressure to find an desirable location for your new home may be immense, there are actions one can take to ensure that they get the most out of their first home.
Tips to Get the Most Out of a Mortgage
Up to 32% of those on the house market are first time home buyers that have to deal with alien concepts like equity and mortgages. Since up to 59% of homeowners wish they knew the terms and details of their mortgage better, here are a few facts to help the first time homeowner ensure that they do not get lost in the details. Mortgage lenders rely on an individual’s credit history to determine an interest rate; those with little to no established credit are categorized as high-risk individuals and thus will receive a high interest rate. Mortgage lenders are notorious for giving out loans with payment schedules that high-risk individuals have little chance of paying; countering a poor credit score with a healthy down payment of around 10% of a home’s value is a good way to avoid the mortgage trap and come out on top. Also, first time home buyers should take extra care to ensure that their income remains the same while buying a home, as this can help homeowners determine an accurate budget — as a general rule of thumb, if you can “just barely” afford a home, chances are that you shouldn’t risk it.
Finding the Perfect House
It has and it still is a buyer’s market since the house bubble burst back in 2007. Many young home buyers looking to start a family are looking for a classic community built on values with a good school district; these ideal neighborhoods are in every corner of the country. Finding the ideal location in a classic community is largely a matter of luck and perseverance. Since the introduction of the internet, many home buyers are able to canvas a wider range of homes than ever before without leaving their computer. Although this undoubtedly gives home buyers the benefit of a wider availability than ever before, there is no substitute for visiting a home in person to determine whether or not the area has a classic community feel and atmosphere. Remember, the ideal house is only one half of the equation to find a perfect home; location has to be considered as well.
Use Your Resources
Although the internet is no doubt a boon for home buyers, there is something to be missed for relying on home postings online. To this end, many home buyers find a real estate agent to be an extremely useful information source. Likewise, many home sellers rely on the nearly 2 million certified real estate agents across the country to add their homes to the agent’s extensive network of properties. All too often does a home buyer relying on the internet make the mistake of impulsively buying a home only to regret it later due to a lackluster neighborhood. Using all of the resources available at your disposal is the best way to ensure that a new home community is right for you and your growing family. Whether a first time home buyer or a real estate veteran, using the internet in conjunction with a real estate agent could be the best decision anyone could make to find the right home and classic community at the right price.
