Tips to Consider for First Home Buyers
Stay Focused on Home Purchases
THUNDER BAY – MONEY – The housing market is hot, in part to low interest rates and home prices that were low for many years. Given that the purchase of a home is typically the largest purchase one will make in their life, jumping into the market and competing against other aggressive bids can be intimidating. The last thing anyone would want when buying a home or property is to have regrets afterwards, especially for those first time home buyers. Here are some tips to consider for first time home buyers.
Make sure to get Pre-Approved
It would seem like it’s a given, but many first time home buyers will assume they’ll know how much they can spend on their home based on online mortgage calculators. It’s important to setup a meeting with your bank or mortgage specialist, since they can provide information to you on what price range you should be looking in, and specifics to consider like property taxes, and other monthly expenses you’ll want to factor in.
Consider Renting for the Short-Term
Despite all the good that comes in owning a house, such as building home equity, it’s important to ask yourself how long you plan on staying in that house. If your long term plan is still not known because of your job, or personal situation, it may be better to rent in the short term. Buyers need to realize all of the expenses renters don’t need to worry about like property taxes, and home owners insurance. This also isn’t considering any unforeseen maintenance costs that could arise.
Skipping the Home Inspection
Many new home buyers may try to cut costs and skip out on a home inspection. Forgoing the fee that inspectors charge to perform a search to flag defects of the property could potentially save you thousands in the long run. These are the types of decisions that you do not want to regret down the road.
Leave your Emotions at the DoorIn a competitive market like we’re in, where multiple offers are made, you don’t want to make an emotional decision. Over bidding for a house that you’re not in love with and that has some red flags may not be the best move. Put in a bid that you deem to be fair value for the house, instead of putting in a bid based on what you believe will out bid other offers.
The Bottom Line
There are a lot of important factors to consider when purchasing your first home. You want to make sure you feel good about the purchase, and it’s not something to grow to regret. Should you have any questions about getting pre-approved for a mortgage, or refinancing your current mortgage, feel free to contact me.
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Anthony M. Talarico
Financial Security & Investment Representative
W: (807)343-4788 ext. 4248