August 20, 2012
Buying your first home
Buying a home is a great long term investment. In fact, 73 percent of Hispanics believe that buying a home is a good path to building wealth. According to Movoto.com, between now and 2020, Hispanics will account for 50 percent of new home buyers.
Many people will give you lots of advice when it comes time to buying your first home. We offer a few tips to get you through the whole ordeal.
Don’t rush into purchase. A home is not something you buy on an impulse. Market prices can rise and fall unpredictably. Take your time considering your options.
Comparison shop for a good mortgage rate beforehand. Call a few good banks to determine how much they’ll lend you and what interest rate you qualify for. Try to only use 3/4 of the money that they are willing to lend you.
Know your priorities. You should make a list of what is important for your new home to have. Each person wants something different and you will remember everything you want and need if you have it written down.
Get your own agent. Don’t use an agent that works for the seller because you want someone that will help you negotiate the price not just help the seller get their best price. You need someone that will negotiate only for you.
Get it inspected first. Add a home inspection to your contract because you want to know what you’re getting yourself into. If you find something wrong with the house, you can use it as a bargaining tool to get a better price or you can stop the deal before you’re too far in.
Stay within your means. Your first home should fit your budget and your needs. You should also include post moving expenses such as furniture and replacements.
Read your mortgage, all of it. It is a piece of paper that will be with you for years and it affects one of the most important aspects of your life. You should know what you’re signing.
Are you thinking about buying a home for the first time? Do you have any tips? Share them!