Four Financial Tips for 1st Time Home Buyers

by Kristen White Blogger

Know your budget and what you can comfortably afford. This is one of the most important steps because it is often where buyers end up getting in trouble because they get approved for an overall amount and use that as their cap for home prices. The reality is that many individuals get bank approval for an amount but when they look at the monthly payment, they realize that this doesn’t work with their budget or they will have to sacrifice things in order to make that work. Look at your budget and decide what monthly amount is acceptable and then work with your mortgage lender or bank to determine the overall number this translates into with interest, private mortgage insurance and any other fees.

The Newport Coast homes for sale are typically not on the market for very long because of their location and high market demand so you need to be prepared to make an offer as soon as you find a home that meets your needs. Any real estate agent will tell you that a pre-approval letter is the best way to show sellers you are serious about the deal and that you have the financial backing to place a reasonable offer. These are usually good for 60-90 days so buyers have plenty of time to look, compare options and settle on a purchase that works for them. You can work with your personal bank or shop around to see who is offering the lowest interest rates and best deal at the same time you are getting started with this process.

The internet has made it easy to start looking for Irvine homes for sale as well as other areas before connecting with a real estate agent. The benefit is that buyers can check out various neighborhoods without any pressure to see where there are available homes in their price range. At the same time, remember that the purchase price is not the only financial amount to consider. If you want to live on the beach then you need to plan on your insurance price going up due to special conditions or required coverage based on the location. Taxes are also determined by location so it is helpful to ask your realtor or look at the county website to see what the average amount is. There is nothing more discouraging than finding your ‘dream’ home only to realize that you will be struggling every month to meet the monetary obligations because you looked in an area that is above your range when all fees and extra expenses are taken into account.

Buying your first home should be an exciting milestone, celebrated with friends and family members once the deal is done. By following the above tips, talking with experienced buyers and partnering with an expert real estate agent, you can avoid pitfalls and buy a home that has everything you want to live comfortably and satisfied for the foreseeable future at a price that you can afford now and going forward.