| HOKE: First time buying shouldn’t be scary |
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By: ANN HOKE, Post Columnist
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Posted: Sunday, February 12, 2012 5:49 am
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More and more first time buyers are beginning to consider the advantages of homeownership. After all, interest rates remain near record lows and purchase prices are beginning to moderate.
Knowing where to start the process and what questions to ask is just the beginning. Early on in the home buying process, it is very important that the buyer surround themselves with two professionals that will help guide them through the home buying process – an experienced buyer agent and a mortgage professional.
In the meantime, give consideration to the following questions before and during any home search:
What can you afford? Although everyone’s financial circumstances are unique, typically you do not want to put more than 28% of your gross income toward monthly housing costs. Housing costs include mortgage principal, interest, taxes and homeowners insurance. Although utilities are not included in the affordability calculation, don’t forget to factor them into your budget.
What should the down payment be? Zero-down financing is available with some special government loan programs, but most lenders required 3.5% or more.
What kind of mortgage fits best? One of the first steps in the home buying process is to consult with an experience mortgage specialist. He or she will help identify the program best suited to your financial situation and personal goals.
Will the house fit my needs? Knowing the type of house you are looking for will make it easier to focus your search. Do you planning on having a family, expanding, remodeling or looking for a home that has it all? Your REALTOR can help you think through your choices and narrow your criteria.
Do you like the location? Don’t buy into a location or area of town that you don’t like. Moving again within a few years normally means losing money in the reselling process. Money can be lost anytime, but a quick turnaround increases the risk.
What is the neighborhood like? Some communities have amenities (pool, playgrounds, etc.) and many have Homeowner Associations. Be sure and do your homework on the neighborhood you plan to live in. For example, if school zones are important, take time to verify where your home is assigned before making an offer on the home.
How much should you offer? In today’s market, many factors influence the asking price and final purchase price of the home. Your agent should be familiar with market trends and help you make a reasonable offer. Days on the marketing, condition of the home and the buyer’s desire to sell all contribute to negotiating an acceptable price between buyer and seller.
Ann Hoke leads the award-winning team at Ann Hoke & Associates (affiliated with Keller Williams Realty). |
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