A Multi-Family Home

Three Tips For New Home Buyers

by Arnold Gomez

Buying a home can be an exciting process, but the learning curve can be very steep. Purchasing a family home can easily be one of the largest purchases you ever make, so it is important to take the decision slowly and consider all aspects. Once you have weighed the pros and cons and decided to go forward with the purchase, the process may take a while. You have to get approved, find a home, and sign the papers. The average closing time on a home runs about 37 days, so you cannot be in a hurry when it comes to buying a house. In order to buy a home that you feel confident in, here are some things to consider ahead of time.

Get Preapproved Before Looking

Looking for a new house may be the most exciting part of the home buying process, but you need to take it seriously. If you are looking at homes that are out of your price range, you may as well not be looking. Getting preapproved for a home loan can help you determine just how much house you can afford. Experts agree that your monthly housing costs should not exceed 28% of your monthly gross income. You can determine how much this is by taking your gross income each month and multiplying it by .28. When looking at houses, keep this number in mind to make sure that you are not getting yourself in too much debt. 

Determine Your Total Expenses

The mortgage is not the only costs associated with owning a home. There are so many other factors to consider besides just the monthly mortgage payment. You also have to take into consideration if there are any homeowner's association fees, property taxes, insurance, and utilities. Even if your mortgage payment is within the 28%, the rests of the housing costs can end up doubling that number making it hard for you to pay everything each month. 

Don't Go For the Largest House

While it can be appealing to want the largest home in a neighborhood, you have to consider the resale on it. It may be much harder to sell a larger home in a neighborhood than if you have a little bit smaller house in that same neighborhood. The larger the home you buy, the more potential buyers you are knocking out. Additionally, your appreciation is much more limited if the comps in your area are much lower in price. If you plan to resell the house, you may want to consider how easy or difficult it will be in its current location and condition.