5 Tips for First Time Homebuyers
You have decided now might be the right time to enter into the Bend real estate market. Sometimes for first time homebuyers the process of purchasing real estate can be intimidating and very overwhelming. Keith Petersen will be there to help step you through the process from start to finish, he will help you get in touch with a mortgage broker to get you pre-approved so you know what price range you can start shopping in for homes, he will help you navigate the location and neighborhood that would fit your lifestyle and needs best and of course negotiating the purchase and handling all the paperwork that goes along with the real estate transaction. Below are 5 tips and advise to help you prepare for home ownership.
- Buy Only What You Can Afford: It's easy for homebuyers to get caught up in the emotions of buying their first home. It is important to find out what you can afford. You will need to look at your personal finances and your ability to cover additional debt, this is something lenders take very seriously. Lenders will generally want your overall dept to income to be no more than 40-50% of your total income. A good rule of thumb is not to spend more than 28% of your total income on housing costs, this includes mortgage payment, property taxes, and insurance. We have some great mortgage brokers than can help you navigate through the process of finding out what you can afford and what you can get approved for.
- Get Pre-Approved for Your Home Loan: Knowing how much you can afford to spend on a new home is the first step in the home buying process. Like we talked about in step one. There are many mortgage calculators that can help you figure out what your monthly mortgage payments would be based on the price of the home, terms of the loan, and percentage of the down payment.
- Don't Forget the Extras: When you are figuring out how much home you can afford, it's important not to forget the extras. Additional items to include in your monthly cost would include property taxes and any homeowner association dues, home ownership insurance. New homeowners also need to make sure they consider any appliances that need purchased, window coverings and maintenance costs. The general rule of thumb is to set aside 1% of your homes value for yearly maintenance and repairs.
- Make a List: Before you even start looking at your first home, make a list, make columns with items such as "must haves" (examples: backyard, location) second column "wish list" these are things you would like to have but are not necessary. You are probably not going to get everything on your homeownership list but it will help keep you and your real estate broker on track during your home search.
- Find a Good Real Estate Agent: Whether it's finding a mortgage broker, finding out about neighborhoods Keith Petersen can help you navigate finding you the right home at the best price. The goal is to make you happy and successful with your first venture into purchasing real estate in the Bend area.