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6 Tips Most First Time Home Buyers Don’t Consider

 June 24, 2014  /  Comments Off on 6 Tips Most First Time Home Buyers Don’t Consider

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For most people, purchasing a home is a huge step that is not taken lightly. Making the decision to invest a serious amount of money into a financial investment takes quite a bit of thought, and while most people believe they have considered every positive and negative aspect to the situation, there are usually still a few oversights.

Here are the six tips most people forget to consider:

1. Long-term or Short-term

Is this first house a starter home you only plan to be in for a couple of years? Or, do you plan to have kids in this house? Or, are you planning to stay indefinitely? Whichever the case, be sure all of your bases are covered before you purchase. For example, if you only plan to stay a couple of years, if you purchased a home in a bad location or an area on an economic decline, selling your house will be exceedingly difficult. Although plans change, know what your plan is before purchasing a home.

2. Check-List

Since buying a home is an emotional process, often there are homes people get attached to that do not have the features they want or need, which most people realize after the sale has closed. When looking at potential homes, bring a checklist with you that list home essentials and home have-nots. The list will help you to think more objectively.

3. All Expenses

When budgeting for a home, think about all the expenses, including principal mortgage, interest, taxes, insurance, utilities, commute cost, upgrades, moving expenses, HOA, etc. Most people usually just budget the mortgage and taxes, and forget to factor in the other daily expenses that come with a home.

6 Tips Most First Time Home Buyers Don’t Consider

4. Funding

Research mortgage options before settling on one. There are many different types of grants and loans available that you might be unaware of like grants for teachers or farmers, low-equity home loans, or quick cash loans for down payments from companies like TitleMax. Knowing all of your options guarantees you will find the best loan for your circumstances.

5. Neighborhood Demographics

Are the homes in your prospective neighborhood owned or rented? If the neighborhood is mostly owned by investors who are renting out the properties, it only takes a couple of bad renters to drive the neighborhood down. Or, if you do not have kids or do not plan to have kids, will a neighborhood full of noisy kids be an issue?

6. Look Beyond Staging

Staging can truly transform the look of a house, which can be appealing to buyers. However, staging can be misleading, thus be sure to look at the bones of the house as well. For example, a living room can be staged with an inviting setup that includes a television, but the room might not even have cable hookups or an electrical outlet anywhere near the staged television, which means, if you want to replicate that exact setup, you will have to do some serious remodeling. Do not be fooled by a nice package; be certain the home has bones you love too.

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  • Published: 3 years ago on June 24, 2014
  • Last Modified: June 25, 2014 @ 4:43 am
  • Filed Under: Finance

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