| Buying your first home can be both
exciting and frightening all at the same time.
After all , purchasing a home is a major commitment,
involving a great deal of money and is probably
the biggest financial decision you've made so far.
You've probably been thinking about this day for
quite some time, so let's make sure your final
decision is a wise one.
To make sure your home buying experience is
pleasant and results in a purchase that you're
still happy about in the future, there are
few things you need to do.
• Do your homework. In the stock market
world it's called due diligence.
•
Hire an agent that represents you
•
Don’t overextend your budget
If you follow these three rules of thumb,
you should find a great house that you can
call home while also investing in a piece of
real estate that will result in a nice profit
when it comes time to sell.
Do Your Homework Beforehand
Doing your homework beforehand mostly involves
looking at different house designs and getting
a clearer idea of the type of home you would
like to buy. Are there certain features that
you absolutely must have in the home that you
buy? Are you willing to buy a fixer upper that
you can change into your dream home over the
next several years? Are you more interested
in finding a place you can call “home” or
in a piece of real estate that will dramatically
increase in value over the next several years?
Don’t forget to also do research on
the neighborhoods you are considering moving
to. Factors you may want to consider include
South Lake Tahoe's great school system, relatively
low number of crimes, the proximity of conveniences
such as stores and gas stations, and the quality
of the property in the area.
Having a clear idea of the type of home you
are looking to buy will help to narrow your
focus when it comes time to make the purchase.
Don’t be afraid to call a broker to show
you several different houses, either. Just
keep in mind that the realtor the broker assigns
to you is representing the seller. Therefore,
you should only work with this agent to help
you look at different pieces of real estate
so you can get a better idea of what you are
looking for.
Hire an Agent (Team) that Represents You
Once you have determined the type of property
you are looking for, it is time to hire an
agent to represent you. With Dennis and Marilee,
you get a team within a team, you can be certain
they are looking out for your best interest
rather than trying to close a sale for the
seller. With more than 25 years experience
in South Lake Tahoe real estate, you can be
sure that they will be straightforward with
you about the pros and cons of the real estate
you are considering purchasing.
Don’t Overextend Your Budget
The amount of money you can afford to spend
on your home will depend on a number of factors.
Thankfully, there are several mortgage calculators
online that will help you determine how much
you can expect to pay each month toward your
home depending on how much the home will cost.
So, sit down and take a look at your monthly
expenses in order to determine how much money
you have left over to pay toward your home.
Then, play around with the calculators to determine
how much the total cost of the home can be
while still fitting within your budget.
Keep in mind that you do not want all of your
leftover money to go toward a house payment.
After all, you will need extra cash to go toward
unexpected expenses as well as toward entertainment
and other every day expenses. A genera rule
of thumb is to keep all of your debts at less
than 45% of your total gross income per month.
Therefore, you can follow these steps to give
you an idea of how much you can afford per
month:
1. Multiply your monthly gross income by 0.45
2. Subtract all of your debt payments from
the resulting figure
3. Use this amount as a guideline for how much
you can spend each month toward your home purchase
By staying within your budget when you buy
your home, you won’t have to worry about
the possibility of losing the home you always
dreamed of having. Similarly, by hiring a buyer’s
agent and doing your homework ahead of time,
you will be certain to be pleased with your
purchase for years to come."
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