Here is a secret most Realtors will not tell you, but owning a home or condo does not make financial sense for everybody. Does it make sense for you? The home buying process can be complex, overwhelming and stressful, especially for a first-time buyer. The key is fully understanding the process every step of the way. At your first-time buyer meeting with us, we put together a complete breakdown of all the estimated numbers to determine the cost of owning versus renting. This includes an estimate of your financing terms, closing costs, estimated dollars to close, tax advantages, investment potential and resale projection.
In addition, we will teach you all aspects of the home buying process including writing an offer, conditions to the sale, negotiating the right price, home inspection issues, financing options and much more. As your buyer’s agent, we can provide you the market knowledge, resources, and experienced advice to make smart real estate decisions, potentially saving you thousands. Our real estate team is dedicated to making your first home purchase a good experience!
Questions for Prospective Homeowners
Are you ready to buy?
Owning your own home is about more than just being able to decorate any way you like; it’s about being prepared to maintain your home over the years, realizing that part of your income and time will go towards repairs and maintenance. It’s about being willing to take the risks of home ownership with a realistic expectation of the rewards.
How much can you afford?
It can be discouraging to find that your salary won’t stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It’s better to buy a modest home now and look at purchasing your “dream home” in a few years.
What is your debt-to-income ratio?
This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. What 32% of your income will buy depends on where you want to live. In rural or downtrodden areas, for example, it can buy a very comfortable residence and ample acreage. In highly sought-after urban areas, however, it may not even buy a 400 square foot bachelor suite.
What do you want?
Do you like the idea of cleaning your own gutters? Do you shudder at the thought of lawn care? Would you rather just pay a fee every month and have everything done for you? Would obeying rules about when you can have your garbage cans out bother you, or do you want to live in a neighborhood where everything is ‘just so’? The answers to these questions can help you narrow down the search for the right type of property for you.