Few Tips For First Time Residential Real Estate Home Buyers

By: Don Zilleri

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With  housing market improving from the horrible economic downside, it seems that things may be looking up for first time house buyers.

With all the details to follow and the knowledge required, purchasing a house for the first time is often a daunting task. However, there are a number of things that can help  ensuring  the best possible choice with a help of skilled and market aware realtor.

The role of the realtor is very important to educate the first time buyers and be extra cautious in terms of looking out and protecting them in every detail and aspect. Here are few things to watch for:

Type of property

In the residential market choose from condominium, low rise apartment units, town house, and detached or semi-detached family home . Analyze the ups and down of each choice. Condominiums and community properties have monthly association charges, which cares for building repairs and maintenance of the property. Family homes have no monthly charge, but need extra time for maintaining the property. Depend on the lifestyle, consider the type of the property that best suits your needs.

Wishlist

After selecting the type of property and understanding how it fits in your lifestyle, have a wishlist for the features and offerings you would like to have in your dream home. In the housing market, most of the time first time buyers have high expectations for their budget. Have an open mind and understand the property might not offer everything on your list.  The list can consist of the location, number of rooms, separate office, open floor plan, updated kitchen, finished basement, garage, pet friendly, pool, amenities, and the list can go on.

Mortgage

By now you know what type of the property fits in your life and already have put together a wishlist imagining how this dream house functions. Next step is to know how much house you can afford and what limit of mortgage financial institutions approve based on the credit. The biggest mistake many first time home buyer make is to set their standards and lists and view properties of choice without knowing whether they can afford it. Do not assume if you have a good credit, lenders approve any amount of mortgage. Lenders work in detail and consider all sorts of variable to set a limit for the mortgage suitable.

Down Payment and affordability

Based on all the variables and income of the home buyer, financial institutions assign a limit for the mortgage and require down payment. Depending on your savings and other factors of assets, percentage of down payment is quite effective on the amount of mortgage. Most lenders suggest 20% down payment to radically make the mortgage payment easier and for you to own the home faster. After the lenders approve a set  amount of mortgage, it does not mean the amount they set is affordable. Create a list of monthly expenses and add the monthly mortgage payment and after analyzing the numbers see if it is affordable. Other than the mortgage payment, other list of expenses consists of:

- Insurance

- Taxes

- Utilities

- Association fees for community properties

- Maintenance and repair budget or improvement costs

Ideally  look at the cost of the mortgage and the cost of living. Don’t end up paying for something you can’t afford.

Knowledgeable realtor

After considering all the affordability, style of property, and the wishlist for the dream home, find a knowledgeable realtor and real state agent who is fully familiar with the local housing market. The role of an skilled realtor is very important especially when it comes to first time home buyers and educating these newbies the proper steps before signing any deals. The best way to find a trustworthy realtor is through recommendation and referral. That’s why BidsByPros.com is a perfect platform to place your need of a realtor, mortgage advisers, and other real estate helps as a project. Make sure to share your finalized project in your Facebook, Twitter, and Google+ to inform your network of your need Bids By Pros way.

Have more advise for first time home buyers? Please add them in the comment box.

Don Zilleri

Don Zilleri is an author and researcher. He is specialized in business marketing, development and is a small business owner. He learns as he writes by researching and interviewing experts and professionals in many categories and topics. Join him in Facebook and become part of his pro network in LinkedIn All Don Zilleri's article's authored exclusively for BidsByPros.com All rights reserved. If sharing, credit Bids By Pros in article source.