Tips for First Time Home Buyers

Buying a home for the first time is both exciting and stressful. Besides getting approved, there is the search for the perfect home. Cullers Homes can help you with all your home buyer needs. Getting the perfect home for the right price is a balance between need and budget. Two things to consider for the first time home buyer is to try to under-buy, and research any potential area.

Try to Under-Buy

When you first get approved for your loan, it can be tempting to go straight for homes in that price range. This can be a big mistake for first time home buyers. Here’s why: say you are approved for $120,000. If you buy house for that amount, then you get a house for exactly that amount. Well, fact is, that is not the price. The price of the house is only the start. Closing fees and realtor fees must then be included. On top of this, there are monthly payments to consider. Depending on the bank you use, the payments are determined not only by the amount borrowed, but also by the insurance fee and property taxes. This means that your monthly payment might only be seven hundred dollars. But when you add the insurance and property taxes, it can go as high as a thousand and some a month. Imagine handling that for the next thirty years! This is why it is a good idea to start looking for homes below your approval amount. If you have one hundred twenty thousand, but buy a house for one hundred and ten thousand, then your payment will be lower. Regardless of your situation, lower payments are always helpful.

Research the Area

Another thing to keep in mind when you are a first time home buyer is the area. Now, this means deciding on a few things. These include family needs such as size, but also location. Do you need to be within walking distance to a school? A daycare? Do you need to be in a certain part of town? Or are there several areas of town you are comfortable with? Besides this, consider the neighborhood. Does it look nice? Is there a high crime rate in the neighborhood? Would you feel comfortable letting your children play outside here? Or walking at night in the area? After you have decided on this, it is a good idea to look at the property taxes. How much would they be every year? Are they likely to go up? Remember, you will pay property taxes with your monthly payment. Lastly, for any prospective house, have an insurance estimate. Different houses are insured at different rates. Again, this money amount will also be added to your monthly payments. Before committing to buy, make sure you know the area and how much money will added to your monthly payment.

Getting the perfect house does not have to mean paying a lot to keep it. In fact, getting the perfect house at a reasonable cost is possible. Cullers Homes can help any first time buyers with every step of the buying process. Remember, when looking into a home, try to under-buy and always research the area. Contact us for more information!