Buying Your First Home Is A Major Decision
Here are 10 tips every new home owner should know. Most people add this to their investment or asset column, but for some home ownership is just another monthly expense. Truth is, if it does not add to your return on investment fast, then it’s an expense. But for the long term, home ownership can be an investment.
Either way you look at it, make no mistake, it can and will be costly. To help you weed through the home buying process, we have put together some knowledge and strategies for every new home buyer before you start your home hunting. Here are 10 tips every new home owner should know.
Let’s first examine your life style. Are you interested in acreage, pastures with animals? Or are you the person who is energized by the urban city scapes? Do you plan on having s family friendly suburban lifestyle? It’s important that you,consider these items of limitations, as each locale places on your lifestyle and the perks each has to offer. before making the commitment to buy.
Now, suburban lifestyles are mostly flexible, offering children the opportunity to play outdoors and enjoy a neighborhood environment. Urban areas offer greater social culture, education and career opportunities. Rural areas offer privacy, room to roam and the ability to pursue hobbies, such as gardening, on a large scale.
In addition to locale, it is important to think about the type of dwelling you are considering. Will you quickly outgrow the city brownstone living? Is a country cottage the perfect fit and size for you? Will buying a condo allow you to forgo lawn and home maintenance and still enjoy more leisure time?
Looking At the Cost of Ownership
Weighing the cost of home ownership. There is more to consider than just a monthly mortgage payment. Will you be able to afford the expenses that come with owning a home? Things such as, monthly utilities payments, the property taxes, home repairs, a home owners association fees, lawn maintenance. Then again, some of these items you can do yourself, but they can still add up.
If you are moving to a new part of town, or a new city, it is important to consider the cost of living for that area. Transportation, school tuition and everyday living expenses can also make home ownership more expensive that it initially appears to be. Here are 10 tips every new home owner should know
Doing some research can help you decide whether it will benefit you more to build a home or buy a home. Having a home custom built to your specifications can be expensive. But are you ready to take on a remodeling job and updating an older home to meet your needs? Remember, a remodeling project can often be expensive and in the end, is less satisfying. As well, finishing a project yourself with out experience can result in the purchase of costly tools and the loss of your valuable time.
Do your research before signing with a contractor or deciding to revamp an older home. Keep in mind, location is one of the most important factors when buying or building a home. A bargain is not really a bargain, when it is not in the correct neighborhood. Sometimes in certain ares, (as we have experienced in my local neighborhood) property values will skyrocket, as does the property taxes along with the value. But it is rare for that to happen. Sometimes it is better to take a chance on a smaller home, or one in need of repairs in a great area where the value will only rise a slowly.
Types of Mortgage Loans
Be sure to read all the fine print before signing a new mortgage. If you have to, take the documents home with you before signing. Mark down on the docs all your questions and get them answered to your understanding. A loan rate can look great in an advertisement. But once bankers have drawn you in to the branch office, what will you really pay? Points, PMI, (private mortgage insurance) and closing cost can drive your monthly mortgage cost up.
Be sure to read all the clauses and fine print before signing that mortgage. And do not be afraid to shop around for the best possible mortgage. Not all mortgage brokers are the same.
Now, most real estate agents represent the seller. But a buyers broker represents your needs, desires and helps you locate the that is best for you as a buyer. A buyers broker will help you find the property best suited for you. while buyers brokers are difficult to locate in some markets, remember that locating a professional advocate who is required by law to get you the best price and terms, can alleviate home shopping stress. Here are 10 tips every new home owner should know.
Another important part of any home purchase, is the inspection. your lender will need to have an inspection performed on the property that you decide to purchase. But it is good to have the home inspected yourself, if you can. either way, demand full disclosure and a professional home inspection.
Most states require that a home seller discloses potential problems with the property, but the home owner may not always know or reveal existing structural problems (despite the legal requirements). The only way to truly know what is going on inside and out, over and under a home ‘s structure is to secure the services of a reputable home inspector. You can expect to pay around $300 to $700 for the inspection. Yes, that may seem like a lot of money now, but consider the thousands it could save you if the home is not up to code, or has major issues.
Here Are 10 Tips Every New Home Owner Should Know
Signing your documents, be sure to get every part of the deal in writing. Perhaps one of the best ways to protect yourself is to have every part of the sale in writing and make sure you understand every aspect before making a commitment. Legal jargon and real estate terminology can be confusing for some people and somewhat frustrating. So hone in your real estate vocabulary before house hunting and don’t be afraid to ask a lot of questions along the way. Here are 10 tips every new home owner should know.
Now, after the sale there is still work to be done. First purchase home owners insurance. which is required in most states. Next, decide if the purchase of a home warranty (if not included in the sale) is in your best interest. Finally, make sure your title has been taken care of during the sale process.
You do also want to know if the taxes are included in the monthly payments. Meet with a tax consultant to learn about your property taxes. Are those property taxes rolled into the monthly mortgage or not? Always keep your paperwork for your annual federal and or state income tax returns. you can often deduct the property taxes, points and interest you paid on a mortgage. Set up a consultation with a tax accountant to learn more about the restrictions on these types of deductions.
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