Are you thinking about buying your first home? It isn’t rocket science but there is a rather steep learning curve to master. If you play your cards right, you’ll come out unscathed and ready to profit from your purchase. Here are the top 5 things that you will absolutely need to know as a first-time homeowner.
1. How Much Can You Afford to Pay?
The first and most obvious thing that you will need to figure out in advance is just how much you can realistically afford to pay for a home. This is not an issue where you want to be imprecise in any way. If you’ve been saving your pennies for this rainy day, you need to do a complete count to see how much home you can buy.
There are other issues to consider besides the price of the home itself. There is also the fact that you need to find a mortgage broker in Colchester who can offer you the best terms on a home loan. The length and rate of interest on your mortgage need to be fixed at a level that you can safely afford.
2. Do You Know the Neighborhood?
It definitely helps to know something about the neighborhood that you are thinking about moving into. What is it like as far as amenities, conveniences, schools, hospitals, and other features? What is the crime rate like? And, perhaps most importantly of all, what are the home values like? A little knowledge goes a long way.
3. Do You Have Tax Credit Options?
What kind of tax credit options can you lean on for assistance? Will you be able to take advantage of a mortgage interest deduction? This may be the case if you have a brand new mortgage and are a first-time buyer thereof. If you were able to buy discount points, you may be able to deduct them come tax time.
You should also be aware that there a few states as well as local areas that offer a program known as mortgage credit certification. Under the terms of this program, you may be able to qualify for a tax credit that can offset a portion of the mortgage interest you are presently paying.
4. Will Your Home Value Appreciate?
Another major issue that you need to know before you put money down on a house is whether or not you will ever see a return on your investment. You need to be certain that your home value will appreciate, rather than depreciate, in the years to come.
There are many things that you can do to raise the value of your home. You can embark on a series of low-cost renovations that will add a great deal of resale value to your property. Best of all, you can accomplish these renovations for a price that won’t put a major dent in your operating budget for the new year.
5. Do You Have the Best Real Estate Agent?
One of the key ingredients for success as a first-time homeowner will be making sure that you choose the right real estate agent for your needs. This should be a person who you can easily work with in order to secure your best interests in this matter. They should have a wealth of knowledge, skills, and qualifications to recommend them.
The real estate agent you choose should be able to recommend alternatives in case your original plans don’t pan out. They should have the patience to stick with you as you attempt to secure your home loan. And they should definitely be willing to help you negotiate a deal that will best fit the parameters of your home buying budget.
Knowledge is Power for a Home Owner
The best thing you can have on your side when buying a new home is knowledge. You need to know just how much you can afford, where you can afford to buy, and when. You will also need to know where to go to get the best home loan on terms you can easily afford. All of these things need to be verified so that you can reach your goal.