Tips for First Time Homebuyers
January 22, 2007
That first purchase of a home can be a scary decision. It is important to prepare yourself with as much knowledge about the process as you can. Nowadays, there are articles in the media everyday that discuss some aspect of the home buying transaction. However, to a first time homebuyer, these articles can be more confusing than helpful. In my blogs of the next few days, I am going to offer some simple tips that I hope will make your homebuying search and purchase manageable and satisfying.
First question to consider: How long do you plan to live in the home you are about to purchase?
If your answer is less than 3 years, you might reconsider and continue to rent. Why? Because with the closing costs which come with the purchase and sale of real estate, in a normal market, whatever that may be, conventional wisdom states that it takes at least 2 years for the market to show enough appreciation for you to break even. After 3 years you begin to show a bit of profit. (This conventional wisdom depends on the economy being relatively
steady.)
Purchasing makes more sense than renting anytime you plan to be at one location for at least 3 years. So you may not be looking for a "forever" house, but you are looking for a home that meets your needs now.
Many potential first time homebuyers want to purchase, but have been told that they must have the traditional 20% down payment in their bank account. In the present real estate market, the 20% down requirement is a myth. If you have good credit, a stable job, there may be a loan for you. So my first tip is "GET PREQUALIFIEd."
Century 21 Lois Lauer Realty has a relationship with Financial 2000. Give them a call at 909-748-7110 and speak to a loan officer. They will be able to help you set the parameters for your home buying search.
That first purchase of a home can be a scary decision. It is important to prepare yourself with as much knowledge about the process as you can. Nowadays, there are articles in the media everyday that discuss some aspect of the home buying transaction. However, to a first time homebuyer, these articles can be more confusing than helpful. In my blogs of the next few days, I am going to offer some simple tips that I hope will make your homebuying search and purchase manageable and satisfying.
First question to consider: How long do you plan to live in the home you are about to purchase?
If your answer is less than 3 years, you might reconsider and continue to rent. Why? Because with the closing costs which come with the purchase and sale of real estate, in a normal market, whatever that may be, conventional wisdom states that it takes at least 2 years for the market to show enough appreciation for you to break even. After 3 years you begin to show a bit of profit. (This conventional wisdom depends on the economy being relatively
steady.)
Purchasing makes more sense than renting anytime you plan to be at one location for at least 3 years. So you may not be looking for a "forever" house, but you are looking for a home that meets your needs now.
Many potential first time homebuyers want to purchase, but have been told that they must have the traditional 20% down payment in their bank account. In the present real estate market, the 20% down requirement is a myth. If you have good credit, a stable job, there may be a loan for you. So my first tip is "GET PREQUALIFIEd."
Century 21 Lois Lauer Realty has a relationship with Financial 2000. Give them a call at 909-748-7110 and speak to a loan officer. They will be able to help you set the parameters for your home buying search.
posted by shirley harry at 7:50 AM
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