First Time Home Buyers
According to the National Association of Realtors more than 40 percent of all home purchases are first-time buyers. Are you thinking about buying a house but are frightened by the National news headlines? Thanks in part to the media, a lot of people are terribly misinformed about the real estate market. Many of the news stories would have you believe that you would have to be an idiot to buy a home right now. But anyone can take advantage of leverage and tax free profits, as long as they are prepared.
Becoming involved in the real estate market becomes less scary when you educate yourself. There are great benefits to being a homeowner, such as having a more stable lifestyle, tax benefits, and appreciation. When people ask me, “When is the best time to buy Real Estate?” I say the only timing that is important is your own personal timeline, the market doesn’t matter. No one ever got hurt buying real estate at the wrong time. They have been hurt when forced to sell at the wrong time. Here are some things you need to do before you take the plunge:
1: Credit: Know your credit score and how credit works. Get it in shape if you need to.
2: Financing: Get Pre-Approved so you know what you can afford and sellers will see you are a serious Buyer. Work with a reputable Mortgage Broker!
3: Understand Taxes: Tax savings can put you into a more expensive home than you think you can afford.
4: Save: You’ll need money for a down payment, closing costs, moving and other expenses. Put off trips and luxuries until after you’re in your new home.
5: Different financial options: Learn which options are open to you. Consider FHA, VA, and State-backed loan programs. If you are in Rhode Island, check out the programs RI Housing have.
This week’s Real Estate Insight:
Despite the national news coverage, Interest Rates are still low and there is plenty of money available for good borrower’s to obtain good mortgages.