by Anthony O. Kellum, For New Pittsburgh Courier
According to the National Association of Realtors the average age for first time homebuyers in the U.S. is 33, a relatively young age for such a big life choice. That said, buying your first home at any age can be stressful and a time-consuming experience. Fortunately, there are few crucial pointers that will help make the journey to homeownership a less bumpy ride. Here are five tips to get you on your way:
Draw up a budget and stick to it.
Let’s say you’re interested in a home, but you’re not sure it’s in your price range. That’s a problem, before you start browsing; it is crucial that you iron out important questions such as, what is the most you can afford? What is your ideal price range? To help you get started, contact a mortgage broker or use an online mortgage calculator to determine the maximum monthly payment you can afford based on the price of the home after your down payment. “Make sure your monthly budget includes the total mortgage payment with taxes and insurance and all so consider the maintenance cost of a property,” says Arlita Harvey, the broker owner at Arlita Realty.
If you fall in love with a house but the monthly payment is more than you can afford, when including all your other fixed expense, it’s time to move on. You can also enlist the help of a mortgage broker to help you arrive at some figures. They will be able to tell you how much you qualify for and at what interest rate this will give you an idea of the most you are able to pay.
Make a shortlist of your non-negotiables.
Before you start seriously shopping, consider your lifestyle and values. What features would enhance your well being? From there make a list of non-negotiables, says Arlita from location, to square footage, to amenities that you must have in your future home. This will also help guide your realtor. “There is nothing better than knowing exactly what you want, but it’s hard to find everything in one property, Arlita says. “The best way to gauge your options is to visit open houses in the area and get acquainted with the local market.
Use an experienced realtor who knows the area and the market.
Your realtor can make or break your home buying experience. If you know where you want to live, try and get a realtor referral. 54 percent or buyers found their agent from a personal referral or had used an agent they’d worked with before, according to 2019 figures from the National association of Realtors. Start by asking friends, and family who live in your area of interest for recommendations, in addition Trulia, and Zillow will have ratings of local real estate agents. Arlita says, “A good realtor will be in your corner until the closing. An experienced realtor will also have contacts for loan officers that can pre-approve you to show sellers you’re a serious buyer.
Check out comparable houses to get an idea of pricing.
First time homebuyers should look at comparable homes in the area they want to live, according to Bankrate. Thanks to real estate sites such as Trulia, Zillow, Redfin and Realtor.com, there’s no excuse not to research what homes in the area you’re looking at have sold for recently.
Ask the realtor about expected closing costs.
What are closing costs? When you purchase a home, you will need to budget for closing costs too, not just the down payment. Mortgage closing costs are fees you pay when you secure a loan for your home, beyond the down payment. Mortgage closing costs are fees you pay when you secure a loan for your home, beyond the down payment. Closing costs and pre-paids can vary widely. Here is a quick look at some of the main closing costs: Loan origination fees, Appraisal and Survey fees, Title insurance, Homeowner’s insurance, Mortgage points, Property taxes, Closing or escrow fee. As for the realtor’s commission, that’s paid by the seller, not the buyer. Happy house hunting!
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