Buying your first house can be extremely exciting but you have to make sure to know the dos and don’ts. Incurring losses can be painful and a waste of time, effort and money. While there are plenty of ways to ensure that you don’t do the wrong things and do plan correctly, read this article by Zack Childress, a real estate mentor, on “Instructions for first time house buyers”
Guidelines for people who are buying houses for the first time
Spending too much or too little:
Spending too much for a house is not good. Housing prices are not just about the final purchase cost, but also come with repair costs and taxes. When you fix up the budget, you should plan according to the general rule which states that monthly expenses which include mortgage payments, property taxes and heating expenses should not be above 32% of your monthly gross income. Spending too little for your house is also bad. This will result in buying one which you will want to leave soon. You have lost precious money, time and effort in the house buying deal then.
Don’t buy just any house:
Consider what home suits your needs. For example: if you want a property for some time and then resell it, then consider buying a single family home as it makes quick money with a few upgrades. But, if you want return on your investment, then it’s good to go with a multi-family home. With good staging and marketing tactics, a multi-family home can fetch you amazing rent.
Also consider other demographic factors like locality, education, transport facilities, climate and so on. For example: If you have 2-3 kids who have come of a school-going age, then it’s better to choose a locality with at least 2 to 3 good schools . You don’t want to be traveling at length to 2-3 schools everyday do you?
Choose a house with fine and necessary features. For example: the house must come with in-good-condition gadgets like heater, air conditioner, dishwasher, microwave and so on. Check for the layout of rooms and space constraints.
Consider how much mortgage you can obtain. While you might think you are eligible for more, the lender may think that you are suitable for a lesser amount only. This is based on some parameters like how long you have been in your current job, your other debts and your monthly net income.
Researching is crucial:
Researching is of vital importance. You cannot buy a house blindly. Go to the locality of your prospective house and make a thorough tour of the parks, roads and the schools. You can speak with the neighbors and learn more about the house. Ask for an inspection report of the house to uncover hidden defects. Do the research yourself. While real estate agents may know a lot about neighborhoods and facilities, the best one to decide what you want is you.
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These guidelines by Zack Childress will be very useful for first time house buyers.