Don’t let the perceived complications of buying your first home keep you from enjoying all the benefits of being a home owner. Buying a home not that hard to navigate if you start by paring the process down to a few simple tasks:
1. Get approved for your mortgage loan before you house shop. It’s no fun looking at homes that are way above what you can afford. If you are preapproved for $200,000, you can save yourself a lot of time and trouble by narrowing down your prospects from the beginning. Shop for a good rate at your normal bank and then see what traditional mortgage lenders have to offer as well.
2. Narrow down your choice of locations. It’s important to look down the road at things like local school systems (even if you don’t have children) because eventually you will want to sell the property. Real estate taxes vary from city to city, as well, and will have a definite impact on your monthly mortgage price. Once you know which suburb, community or city area that fits your needs, it’s time to start the fun part – house shopping.
3. Don’t try to go without a realtor. It’s only when you’re selling a house that you pay up to 6% of the price in commission. On the buying end, a realtor will listen to your concerns and match you up with homes that would be a good fit.
4. Keep your expectations at bay until the deal is done. Too many first time buyers get their hopes up the moment they fall in love with a house in their price range. There are several hoops to jump through between that and closing day, however. A home inspection could shed light on potential problems, the seller could refuse to negotiate and accept your highest bid, and so on. Your realtor will handle all of it and be the go-between between you, the seller and even set up the closing meeting with all the necessary parties. There will be plenty of time to celebrate after you have moved into that first house.
Pride of ownership is a big part of the American Dream. By being a home owner you’ll benefit from tax credits, sure, but you’ll also see your investment pay off down the road as the value of your home appreciates. When you compare that to paying rent every month for someone else’s property, there’s really no comparison.
Bill Huss is a life counselor who advises people on issues ranging from home buying and investing for retirement to choosing online colleges and online degree programs.
