Buyers Guide

• How Much Can You Afford as a First Time Home Buyer

  • In general, experts recommend that your house payment (which will include your mortgage, maintenance, taxes) should not exceed 28% of your gross monthly income.

• Do Your Homework 

  • Check for listings, neighborhood information, current mortgage information and home ownership services. The right amount of research will help you to better understand the marketplace and homes available in your price range when you’re ready to work with a real estate professional.

• Create Your Checklist

  • To help make the home buying process a little easier, create a checklist of the important features you're looking for in a home. Also, think about what matters in terms of location. What’s the commute to work going to be? What schools, parks, or shopping centers are nearby? 

• Pick the Right Real Estate Agent 

  • Before you make a massive payment, you will want to have a trusted real estate agent by your side to explain the ins and outs of the process. Make sure you find an agent familiar with the areas where you plan on purchasing.

• Know There’s No Such Thing as a Perfect Home 

  • Understand that real estate is about compromise. Most buyers prioritize three main things: price, size, and location. Realistically, you can expect to achieve only two of three things.  Such trades off are par for the course.

• Make An Offer

  •  Be prepared for counter-offers from other buyers and some negotiation with the seller, but once you find the right house, make an offer. If an offer is accepted, it goes to the contract phase.

• Protect Yourself 

  • Don’t purchase a home or make any payments without doing your due diligence. Add contingencies to your contract- you have the right to back out of the deal if something goes horribly wrong. Contingencies to consider are the home inspection, financing, and appraisal. 

• Home Inspection 

  • Inspectors will check the house for any structural damage. In the contract with the seller, it should state any necessary repairs that must be made before closing on the house. Prior to closing, walk through the house and check that such repairs have been completed.

• Know your Tax Credit Options

  • There are a number of tax breaks homeowners may not be aware of. Mortgage interest deductions is a boon for brand new mortgages, which are typically interest heavy. If you purchase discount points from your mortgage, essentially pre-paying you interest, these are also deductible. Some states and municipalities may offer mortgage credit certifications, which allows first time home buyers to claim a tax credit for some of the mortgages interest paid. 

• The Closing

  • This is where the seller and buyer sign settlement-closing papers to transfer the ownership of the home and all transactions are finalized. Congratulations, you are now a homeowner!