Did you know that 75% of new home buyers rented an apartment or home prior to their purchase? For many people planning to buy a home, the details can sometimes feel overwhelming. Instead of just signing a lease, you have to talk to real estate agents or building companies, make sure all the proper inspections are in order, set up phone, internet and electricity, figure out mortgages, and more. Need some help? Here are our three easy tips for buying a first home.
1. Financing Your Home
Paying for your home is one of the most important things to consider when you’re starting out. Most experts recommend buying a home that you can put 25% of your income toward every month. Some first home owners, though, find it necessary to put away as much as 33%. In either case, make sure you have enough so that you can weather working time lost to lay offs or injury without missing payments. You should check to see if you are eligible for the first home buyer tax credit. The first home buyer tax credit can reduce your tax bill with the IRS, or increase your refund. Many people will also qualify for government subsidized loans, known as Federal Housing Administration loans.
2. The Advantages of Building New Homes
Many people assume that re-sold homes are the better deal. They cost less, they’re predictable, they’re on the market right now. However, this housing dilemma doesn’t always end the way you think. Custom two storey homes are more energy efficient, have better technology and building materials, and they can be more tailored to your family’s specific needs. If you do decide to invest in new house development, keep in mind that initial estimates don’t always accurately predict final cost. For this reason, you should look for a property development company that specializes in building homes economically, without sacrificing quality.
3. Check Out the Local Area
Never move to a new location without getting a sense of the neighborhood. Studies have shown, for example, that neighborhoods with 10% more tree canopy experience 12% less crime. While this is highly specific data, it lends credence to the importance of examining multiple factors. Is the area low crime? Are the other homes occupied, or are some boarded up– a sign that doesn’t bode well for property value? Is it fairly close to decent schools, if you have children? Asking these questions can help you find the right home.
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thanks for the tips. good point about proper financing. my cousin figured theyd be able to cover 40% if they scraped it together, and that mightve been true if there hadnt been unforeseen issues… and so, foreclosure happened.