Home Building Tips Home Buying Tips

First Time Home Buyers


1. 3 out of 4 homeowners say their biggest source of wealth is built in a home.  Become a homeowner for many reason, but your investing in your life from the beginning as first time home buyers.

2. Building a dream home out of your budget is a bad idea:  In 2008 and 2009 many homeowners lost their homes to foreclosures, as a result of non-standard loan practices.  Sit down and figure out what you are comfortable spending on a home and most important what you can afford a month.  Take a mortgage loan that makes sense for you and you will be able to pay.

3.  Have  a DOWN PAYMENT:  It is much easier to get a loan with a down payment, banks and lenders feel protected with a down payment.  Once you have a down payment you already have equity, which mean you own a portion of the home.  If property values drop you are less likely to owe more then that home is worth.  Also it will save you from having Private Mortgage Insurance (PMI).

4. You make have to pay closing cost:  These costs include appraisal costs, inspection costs, application fees for your mortgage loan, a title search and various other expenses. You usually either have to pay them up front or they are added to the cost of your mortgage and you have to pay them over time. Occasionally you can negotiate a deal wherein the seller pays the closing costs, but this is not very common.

5 . Get Pre-Approved– You can go to a bank or mortgage lender with your financial information and find out just how much they are willing to lend you. That way, you can look only at houses in your price range and you won’t end up falling in love with a home you can’t afford.

6. Some Seller may pay your  realtor commission-In most cases, buyers do not pay for their agents. Instead, the seller pays three percent to the agent who helped sell the house and three percent to the buyer’s agent who helped you buy it.

7.  A SAFE BET!!! Real estate investments are widely considered a hedge against inflation: Inflation refers to the falling value of the dollar. In other words, the purchasing power of $1 will be less tomorrow than it is today, since goods tomorrow may cost slightly more. Since real estate is a tangible asset that rises in value, it is usually considered to protect you against this phenomenon, at least to the extent of what your real estate is worth.

8. TAX  SAVINGS!! This means you can reduce your taxable income by the amount of interest you pay. If you make $50,000 for example, and your mortgage interest is $9000 per year, you can deduct that $9000 to reduce your income to $41,000.

9.Be ready for Property Taxes: Property taxes are determined by the assessed value of your home. They have to be paid to the county every year or the tax collectors could take your house.

10. Buy when it Makes Sense:  In most cases plan to stay in the home for two years.  This will give you enough time to makeup your closing cost and on your original mortgage.  Re-sale before two years can result in more taxes as well.

Maronda Homes helps First Time Home Buyers Dream.Build.Live!