Are You A First-Time Home Buyer?
If owning a home is your dream, it is crucial that you are financially and mentally prepared for the responsibilities that tag along with it. This is to ensure you have a happy and satisfying purchase experience, as it is meant to be.
Some people expect home ownership to be like renting with the added power to have any pet and paint the walls any color you like. While these privileges are available to homeowners (in most municipalities), home ownership also comes with the responsibilities of a mortgage, taxes, and home maintenance. Preparing for home ownership requires you to take critical stock of your finances and expectations for a successful and joyful experience.
Questions for Prospective Homeowners:
Are you ready to buy a home?
Owning your own home is about more than just being able to decorate any way you like; it's about being prepared to maintain your home over the years, realizing that part of your income and time will go towards repairs and maintenance. It's about being willing to take the risks of home ownership with a realistic expectation of the rewards.
How much home can you afford?
It can be discouraging to find that your salary won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It's better to buy a modest home now and possibly even use it to purchase your "dream home" later on.
What is your debt-to-income ratio?
This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. What 32% of your income will buy depends on where you want to live. In rural or downtrodden areas for example, it can buy a very comfortable residence and ample acreage. In highly sought-after urban areas however, it may not even buy a 400 square foot bachelor suite.
What amenities interest you/do not interest you?
Do you like the idea of cleaning your own gutters? Do you shudder at the thought of lawn care? Would you rather just pay a fee every month and have everything done for you? Would obeying rules about when you can have your garbage cans out bother you, or do you want to live in a neighborhood where everything is 'just so'? The answers to these questions can help you narrow down the search for the right type of property for you.
We Can Help
You need a good agent who will work hard for you. At Albert Wooster & Co. Realty, our team of boutique concierge realtors is dedicated to helping you find the right home, at the best price. We want you to find a home that will make you happy and successful in real estate ownership.
When you hire us to help you buy your first home, we will help you find what you want for what you can afford in a residence that you'll enjoy being the owner of.
Keep your objectives in mind when visiting a home. Sometimes the idea of owning a home can be overwhelming. Keep a list handy of the features that you need and want in a home and judge each home by that list, so that other details do not distract you from your ultimate goal. After viewing properties with your agent, you can privately go over the pros and cons of each home and revise your list as needed. We are here to help you stay on track while still keeping our eyes out for a great property.
Engage the services of a good real estate lawyer. We can recommend several lawyers in the area who might be a good fit for you. You can also interview them to ensure that you will enjoy working with them on this important step into home ownership. The legalities of transferring land ownership can get complicated, and a lawyer can be your best defense against future legal troubles. A good lawyer can charge several hundred dollars to over a thousand dollars for their services, but can save you thousands in legal fees later on, making this a worthy expense and a good service to use.
Make the offer. This can be a maze of "buyer", "seller", "chattels", "deposit", and "completion". We'll be happy to prepare all the paperwork and go through it with you before submitting it. Remember, the seller may reject or counter your offer, so even at that late stage, understand that you may have to let go of your first pick out of the many homes which fit your criteria. Sometimes to avoid this pitfall, you may write a deposit check to the seller's broker that proves the seriousness of your offer.
Get all necessary inspections done. A home inspector will check for signs of harmful materials like asbestos, lead paint, and mold. They'll also check for evidence of pests, faulty wiring, and leaks. This is a crucial part of the home purchase. Not getting an inspection done means that you could be stuck in a home with a bad case of black mold and no recourse other than to pay for its removal. Inspections will cost a few hundred dollars, but again, this is more than worth it in the end and can ensure you have an airtight contract for stress-free and happy home-buying. There are several inspectors in the area that we'd be happy to recommend.
Do a final walkthrough before closing the deal. We at Albert Wooster & Co. Realty are happy to perform this second-to-last step with you to make sure that everything agreed upon is as expected prior to the final signing.
From the first interview that determines your requirements to the moment that you receive the keys, we can help you with the sensitive process of buying a home. Don't hesitate to contact us to find out more about how we can make the home buying process even easier!
