First Time Homebuyers: 3 Questions to Ask Yourself

First Time Homebuyers: 3 Questions to Ask Yourself

Buying your first home is a new and exciting experience, but it comes with many questions and unknowns. Answering these unknowns is the best way to make an informed decision when buying a home. Buying a first home is a difficult task, but if you consider these three questions you’ll be better equipped as a first time homebuyer.

1. What will I be able to afford?

  • When you buy your first home you need to not only consider your current income, but what your future income will likely be.
  • The younger you are, the more likely it is that your income will increase in coming years.
  • Make sure not to overestimate your income.
  • Plan for situations that may require extra funding, like having kids, marriage or divorce.
  • If you plan correctly, you can invest in a home that you really enjoy with the estimated knowledge that you will able to afford the mortgage payments over the years.
  • Do not exceed your budget.

2. What additional costs are there?

  • All homes will have extra costs.
  • Older homes typically cost more in maintenance than newer homes.
  • Homes in flood, and other disaster, areas will to cost more to maintain.
  • Identify any issues before you purchase the home so you know how much more you’ll have to pay to make the home livable.
  • If the house is not furnished, map out how much you are willing to spend to furnish each room; budget that into your home-buying cost.
  • Even if the house is furnished, you’ll probably have some additions – build these into your cost.
  • Expect to pay anywhere between 3.5%-4.5% of the cost of the home to maintain your home each year.
  • Factor all move-in, maintenance, and furnishing costs into your budget.

3. Should I look outside my budget?

  • Depending on how you’ve allocated your funds, your budget can be flexible or strict.
  • For home costs including mortgage, homeowners insurance, and property taxes, allocate 35% or less than your income before taxes.
  • If you find a home that you love, but it’s just outside of your budget it’s okay to stretch for it – as long as you’ll be able to meet the payments.
  • Don’t stretch for a second place home.
  • If you can’t find a home you love, start with a below-budget option so you can save up for a great home.

These tips should offer you some insight on buying your first home. Knowing more will help you make a more informed decision.

This post is created by Inspect-It 1st®, it is a Property Inspection Franchise that follows stringent home inspection checklist to offer various home inspection services, to buyers, sellers, real estate agents and others. Read more about Inspect-It 1st®. For more answers to popular questions for first-time home buyers, contact a team member at Henderson Properties today!

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