Tuesday, February 14, 2012

Top 5 Tips for First Time Home Buyers

Top 5 Tips for First Time Home Buyers
 
1.) Have a spending plan:  saving money for a down payment is only one step in purchasing home. You will need at least 3.5 percent for your down payment and depending on what type of loan you decide on, you could need up to 20 percent down payment for conventional mortgages. It is also a good idea to have a nest egg of cash tucked away for unexpected expenses. Although a real estate professional can help you map out your home buying budget, there will be unavoidable things that pop up out of the blue. If you have a little extra cash on hand, it will help reduce stress and help you create a positive home buying experience.

2.) Figure out what you qualify for: although you may be comfortable paying a certain dollar amount now for rent, owning a home has other built-in monthly expenses. You will need to consider property taxes, homeowner’s insurance, utilities, landscaping or pool services, for example. A typical mortgage has what we call “P.I.T.I.” which stands for “principle, interest, taxes and insurance.” A qualified mortgage specialist can assist you with figuring out exactly how much you can afford each month for a mortgage payment. With property prices as low as they are today, you will be surprised at how much you might be able to save on a mortgage payment verse paying rent.

3.) Picking your mortgage: there are a lot of options out there when it comes to a lender, a mortgage company and what type of mortgage to use. Not all lenders are alike and not all mortgage companies will provide you with the best service and options available to you. It is important to work with a reputable company and mortgage specialist – the last thing you want is to have your American Dream tarnished by a bad loan experience. As a real estate professional, I have connections with lenders who will help you get the best interest rate and terms and provide excellent service along the way.

4.) Location, Location, Location! this is an essential piece to purchasing a home. First of all, you will want to identify what is important to you – is it a particular school district, convenient commute to work, historic community, close to parks or shopping and dining? Secondly, you want to consider future resale value. I know at first, you may think you will live in this home forever and who cares about selling it now when you haven’t even bought it yet. But there will come a time when you will want to or have to sell and you’ll be glad you took the time to make a purchase that has the best possible resale value.

5.) Choosing a REALTOR: a professional, full-time, experienced REALTOR is a must when purchasing a home – especially your first time buying. As a RE/MAX agent, I am highly trained and I have the local knowledge you need to make a well informed, smart decision regarding your home purchase. In addition, I have the advantage of working with the largest real estate network in the world – no other real estate company sells more real estate than RE/MAX.

If you or someone you know is interested in purchasing a home, please give me a call. There has never been a better time to make a move than in today’s real estate market. Let’s get started today and get you moving tomorrow!

Luisa Ramirez, RE/MAX Professionals
623-687-7827
Luisa.Ramirez@remax.net 

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