First Time Home Buyer Tips

We all want our own place. We want to be able put a nail in the wall wherever we please or just paint something a color we choose and possibly tear out the grass and plant our own garden.

When you think about the reasons why you want to own your own home; you probably also think about the extra responsibility that comes with it. Your house will demand time, money and energy to keep it maintained and no landlord to fix the broken pipes.

Reasons for Buying

Reducing income taxes is a great reason; with a mortgage you can deduct the interest you’re paying on your loan as well as the property taxes from your taxable income. This could make it more affordable to own rather than rent.

1. Building equity in your home as you pay down your mortgage provides the security if you need to use that equity you can obtain an equity loan or line of credit.
2. Buying for profit is another reason; there are no guaranties your home will appreciate in value but real estate has proven to be a good investment over time.
3. Your first home can be a stepping stone to your next. When you decide to sell you can use the equity towards your next home that may be a little bigger and nicer and possibly a larger lot too.
4. Owning your own home provides a sense of security for you and your family; there truly is no feeling like owning your own place.

Timing your Purchase

Timing is everything, the mood of the market (a buyers market VS a sellers Market) and the direction of interest rates may motivate you to buy or cause you to wait.

- Buying when the market is hot generally means prices will be higher
- You will face increased competition from other buyers who may be willing to pay more than the asking price.
- In a hot market you may be more vulnerable to a downswing especially if you don’t plan on staying in that home for a long period of time.
- Buying when the market is slow usually means more selection and possibly lower prices.

Remember it is always good to meet with a lender and get pre-qualified for a loan prior to shopping for a home so you know how much home you can afford. A good local real estate agent will be your best source they will know the market best. Good Luck!

Related posts:

1. Buyer’s Property Rating Worksheet