I remember when I got my first place. It was a little, old trailer, owned by my brother and sister-in-law, and other newly married couples before them. It didn't have good insulation, so your froze in the winter and roasted in the summer. But, it was home, and I have fond memories of my life as a new wife there. About a year and a half of living there, we found a house that had been repossessed. The worst part of the fixing up had been funded by the bank, but this house still needs a bit of work done. But again, it's home, and I love the area very much. What about you? Have you been considering purchasing your first home? These 7 tips for first time home buyers will help you get started on the right foot.
Take your time when buying a house. Make sure you're making the right decision before you sign those papers. Consider all your options and weigh the pros and cons carefully. By doing this, you're more likely to have less regrets about your house choice later.
Sure, you've found a beautiful house that meets all the criteria you've looked for, but look at that payment! Don't buy a house you can't afford to live in. Remember that a bigger and "better" house will come in time. You must work your way to better things. Definitely avoid a house payment that will eat up your paycheck and look for something more affordable.
Interest is the real killer in a house payment. By the time your 20 or 30 years of paying on the house is up, you will have spent more in interest than on the initial loan itself. Keep an eye on the current interest rate and take out your loan at the lowest interest rate you can. If it isn't possible at the moment, try not to get fixed interest, so that maybe in the future, you can refinance at a lower interest rate.
If you find a house needing a few repairs, there is nothing wrong with fixing up things yourself. Just be sure you don't pay too much for the house on top of paying for the repairs as well. Grab a piece of paper and get to figuring everything out. See if this investment is really worth it.
If it sounds too good to be true, it probably is. On the flip side of the last point, if you're getting the deal of a lifetime offered to you, you should do a little investigating. There is a couple I know that purchased a house at a really good deal, only to discover that the floors needed replacing, the roof needed a lot of work and many other things inside needed things repaired as well. When it came down to it, they ended up paying twice as much (if not more) as the original cost of the home.Some bank repo's are great deals, while others aren't. Our house was a bank repo, but required a bit of work itself to be able to be lived in. You just need to totally go over the house before buying it - know what you're getting into.
Just because the price is one thing doesn't mean that the owners won't come down. especially if it's being sold by a realtor. Go low and see what their next offer is. Who knows, you may end up kicking off a couple thousand before you purchase the house! Every dollar saved helps, right?
My husband, I have to admit, is a smart man. He knows how to handle money, and he has a great deal of advice to offer his unmarried friends. He tells them it's best to save your money, start making payments on a house and slowly fix it up, all the while, living with your parents. Then, in time, you'll have a house with a good chunk paid on it, as well as completely fixed up and stocked with furniture, ready to move into. Though I'm glad I didn't have to wait on him for several years while he done this, I must admit, it is some great advice. Don't get in a hurry to move out of your parents house. Instead buy a house and go slow in the moving out process. It will make it much easier on you to do it this way!
Buying a home is exciting, I know! Just make sure it's a house you're going to be happy with for a long time. What about you? If you've bought a house and learned from a mistake you made, please share it with our other readers! We love to hear from you!
Top Photo Credit: exclusivesigns.ca