7 tips for first-time homebuyers

If you are a first time home buyer and are eager to get your new home, here is a list of seven steps you should take before taking the plunge.

1. Are you sure you are getting a home at a price on par with current property rates? Actually, nobody can be very sure about it. Therefore, it is advisable to check the rates of houses in your area on websites like Homegain and Zillow. Here, you will have a clear idea of ​​how much you must pay to own a home. Another trustworthy site is the one developed by the National Association of Realtors.

2. Most first-time homebuyers find it difficult to pay the mortgage because the monthly payment is too high. This happens due to inadequate research and inefficient planning before obtaining a mortgage. Use the Mortgage Calculator provided by Bankrate to calculate how much you can pay each month.

3. First time home buyers should also add the cost of the home to their planning list before owning the home. You need to calculate how much homeowners insurance and taxes would add up to get the approximate amount of monthly spending. This sounds insignificant, however it is much more important than one's perception. In some areas, taxes can almost double the amount of the mortgage, First time home buyer maryland.

To find out how much insurance can cost, you can pick up any property in the desired area and call local insurers for the exact amount of insurance. Getting details on property tax is relatively simple. Zillow provides property tax information in all areas of the world. It is also important to note the exemptions and complexes of the local tax system. Many areas can help you save a lot of money spent on taxes.

4. Determine how much would be spent as settlement cost. This cost is comprised of taxes and insurance, lender fees, settlement and title fees, and prepaid fees such as homeowner association fees.

5. Before moving into the new home, first-time homebuyers should set a budget. According to Fannie Mae, spending more than 30% of your income on household expenses can expose you to the risk of being poor in your home.

6. Obtain as much information from the real estate agent as possible. Learn about the local weather, rising and falling prices, etc.

7. The house is definitely an investment. However, not maintaining this investment properly can be a costly affair and may be more costly than the investment itself in the long run.

Therefore, jumping to a decision without due caution can cause problems. It is recommended that first-time homebuyers follow these steps before becoming first-time homebuyers.