Aside

37% of home buyers in 2011 were first time buyers; in 2010, 50% of home buyers were buying for the first time.

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Tips for Buying Your First House

Buying your first home can be exciting, nerve-wrecking, and everything in between.  Preparing and educating yourself before you get going into high gear can go a long way to alleviate any potential headaches now or 10 years down the road.  Courtesy of CNN Money’s all-knowing housing market experts and real estate gurus, here’s a few helpful hints for you first time home buyers out there.

 

 

 

Making the Decision to Buy

If you are considering buying a home for the first time, there are a few factors to take under consideration when deciding whether or not you are ready to buy a home.

Stability

  • Renters are subject to rate changes every year.  As a homeowner with a fixed rate mortgage, you will pay the same monthly rate for the whole life of the loan.   You also don’t have to depend on a landlord or management company to address repairs or problems with the property.
  • Owning a home can provide families and communities with more stability.  Some studies suggest a connection between home ownership and higher graduation rates as well as lower crime rates.

Finances

  • Employment.   Are you steadily employed?  If you need a loan, will your employment history qualify you? Do you expect any changes in employment within the next couple years?
  • Credit.  Is your credit good?  Will you be able to afford the monthly payment with your new home?
  • Savings.  Do you have enough savings for a down payment?  Most loan types require a 20% down payment on the property.  Do you have reserve emergency fund set aside?  It’s a smart idea to have at least 6 months worth of reserve in the bank, enough to be able to cover all of your monthly expenses for each month.

Once you decide you’re ready, now is a perfect time to buy a home!

For more info and talk about your options, please feel free to email us at debraandpat@bermankandel.com, or visit our website here.