FIRST TIME HOME BUYER: ARE YOU READY FOR HOME OWNERSHIP?
Owning a home may be your dream, but for the purchase to be a happy and satisfying experience, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.
Some people believe that homeownership is like renting, but with the power to have pets and paint the walls whatever color you like. However, while these privileges are available to homeowners in most municipalities, they come 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.
Questions for Prospective Homeowners
Are you ready to buy?
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 homeownership with a realistic expectation of the rewards.
How much 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 to pay the mortgage can very quickly make homeownership a burden rather than a point of pride. It's better to buy a modest home now and look at purchasing your "dream home" in a few years.
What is your debt-to-income ratio?
It 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. For example, in rural or downtrodden areas, it can buy a very comfortable residence and ample acreage. However, in highly sought-after urban areas, it may not even buy a 400 square foot bachelor suite.
What do you want?
Do you like the idea of cleaning your gutters? Do you shudder at the thought of lawn care? Would you rather pay a monthly fee and have everything done for you? Would obey 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 correct property type for you.
We Can Help
It would help if you had a good agent
who would work hard for you. Richmond Region Realty enables you to find the right home at the best price. We were hoping to find the home that will make you happy and successful in real estate ownership.
When you hire us to help you buy your first home, we want to know what you want and how much you can afford. Then we'll find a way to merge these two priorities and find a residence that you'll enjoy owning.
Keep your objectives in mind
when visiting a home. Sometimes the idea of owning a home can overwhelm your practical sense, so keep your feelings in check. Keep a list handy of the features you need and want in a home and judge each home by the list instead of by details that could distract you from your goal. When you're alone with your agent, you can go over the pros and cons of each home. We can help you stay on track while still keeping our eyes out for a great property.
Engage the services of an excellent real estate lawyer.
We can recommend several lawyers in the area who might be a good fit for you. The legalities of transferring land ownership can be dodgy, and a lawyer can be your best defense against future legal troubles. A good lawyer can charge several hundred to over a thousand dollars for their services, but the thousands of dollars saved in legal fees, later on, makes this a reasonable expense.
Make the offer.
This can be a maze of "buyer", "seller", "chattels", "deposit", and "completion". We'll be happy to prepare the paperwork and go through it with you before submitting it. Remember, the seller may reject or counter your offer, so avoid setting your heart on the home you hope to own even at this late date. You'll probably have to write a deposit check to the seller's broker that proves the seriousness of your offer.
Get all the 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. It 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. There are several inspectors in the area that we'd be happy to recommend.
Do a final walkthrough
before closing the deal. We'd be happy to do this with you to ensure that everything agreed upon is completed before the final signing.
From the first interview that determines your requirements until you receive the keys, we can help you with the complicated process of buying a home. Don't hesitate to contact us to find out more about making the home buying process easier!