There’s nothing better than buying your first house.
Just sign on the dotted line, right?
There’s a little more involved than simply saving your money and buying a house. It’s a complex process that is made easier with the right Realtor. Before you begin the house buying process, consider a few essential elements that will help guide the first time buyer.
HOW MUCH CAN YOU AFFORD?
This is a numbers game. If you are currently renting, the long-term benefits to home ownership will outweigh renting. Your monthly mortgage payment will build equity in your home.This means that you are investing in yourself. No longer will 100% of your monthly housing allotment go to someone else. Instead, you are now your own landlord, and the financial benefits of home buying belongs to you.
A good guideline suggests that you spend 3 to 5 times your annual yearly income. Do the math. If your salary is $100,000 a year, experts would say that you could afford a house that costs someplace between $300-$500,000. The range is dependent upon your current level of debt. Of course, you aren’t paying all of that upfront. That’s where the mortgage calculator comes in. The calculator formula consists of three major components: the total cost, the amount of a down payment that you can contribute, and the current mortgage rate the lender will loan you. The mortgage rate fluctuates based upon three variables; the market, your current debt load, and your credit score.You will also have closing costs and other incidentals. A good Realtor, like someone from the Yosha Snyder Group, helps guide you through this process.
The basic rule of thumb, then, indicates having something to contribute to the down payment, reducing your debt as much as possible, and maintaining a respectable credit score are three variables you can control.
WHAT TYPE OF HOME DO YOU WANT?
The majority of first time home buyers are attractive to sellers because there isn’t another property involved. Generally, this makes the whole transaction a little smoother because something doesn’t have to be sold in order to buy.
So, you just need to figure out what you want, right? Easy peasy.
Not so much. There are so many choices. So many neighborhoods. So many items on your wish list. It’s up to you to decide what you want and what you need. Sometimes, they aren’t always the same thing.
Condo or duplex or single family residence?
Attached garage or no garage?
Basement or crawl space?
One level or two?
One bedroom or two or three or more?
A large yard? Or a small yard? Or no yard at all?
Good schools? Convenience to grocery stores? Work? Entertainment? Your parents?
So many choices. You have to decide what items are negotiable and which are the deal breakers. And that’s not even taking into consideration the age of the house.
WHAT TYPE OF HOUSE SUITS YOU BEST
For the most part, there are two types of homes: an existing home or new construction.
There are benefits to both.
An existing home is just that. It already exists. Someone else has determined the color of the roof and the kitchen cabinets and where the bathroom is located and what kind of flooring has been used. Maybe the house is just a few years old and doesn’t need much attention. Or maybe the house has a few years on this earth and can be considered vintage. Either way, you need to factor in what changes, if any, you will need to make and consider that in the overall cost of the house. Some existing homes are perfect just the way they are. You can move in and do nothing for years. Others need some TLC and new paint. Others still need a facelift. These can all be fun projects for those who are interested and have the patience. The good news is that most big improvements like remodeling and updating big ticket items like kitchen/bathroom renovations and energy upgrades add equity to your investment.
The other option is new construction. Maybe you have your eye on an empty lot and want to hire a builder to build the dream house from top to bottom. Maybe you want a planned neighborhood and are willing to buy and house and finish the details. Or maybe you are willing to buy the model home being offered for sale by the builder. Whichever version–or variation of–works best for you, you will have input before you move in. Local home developers like Davis Homes, Lennar, and Pulte, among many others, give you lots of options. The right Realtor has your best interests at heart and can help you select the option that fits your wish list.
HOW DO YOU FIND A GUIDE FOR THIS JOURNEY?
This is a major life decision. You need to find the right person to guide you through the process. Many people ask their friends for recommendations. When you find the right realty group, it often develops into a lifelong relationship. The Yosha Snyder Group has that reputation. They want to help you find the right home–and the reality is that, if it’s your first home, it might not be your forever home. The experience of buying your first home should be one that is as stress-less as possible. The Yosha Snyder Group wants to take the guesswork out of the journey for you and put you on the path to homeownership. They are experts in the central Indiana real estate market, but more importantly, they are experts in relationships. They know people; they know houses.