Are You Ready For Home Ownership?
Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.
Some people have a notion that home ownership 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 your expectations.
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Free Home Buyer Seminar
Whether you are buying your first, second or tenth home…get professional buying advice and inside tips from our Kirnan Real Estate experts. No money out of your pocket, so register now and learn everything you need to know about buying your dream home.
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 home ownership 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 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 look at purchasing your "dream home" in a few years.
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.
We Can Help
You need a good agent who will work hard for you. Our Kirnan Real Estate team is dedicated to helping you find the right home, at the best price. We want you 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 that 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 a good real estate lawyer. We can recommend several lawyers in the area who might be a good fit for you. Interview them to ensure that you get someone you can work with. A good lawyer can charge several hundred to over a thousand dollars for their services.
Make the offer. Once you find a home you want to make an offer on, your Kirnan Real Estate REALTOR® will prepare a purchase agreement for you to sign and hold the earnest money deposit to seal the deal. Earnest money indicates you’re serious about the purchase and indicates your good faith. It’s generally applied to the purchase price when you complete the purchase. Be prepared for counter offers. Don’t let the pressure get to you. Remain patient, and let your Kirnan Real Estate REALTOR® act as your liaison with the seller or the seller’s agent. You may need to be flexible on price, closing date, appliances and repairs.
Get all necessary inspections done. A professional home inspector surveys the foundation and structure, roof, exterior, major systems (electrical, heating, cooling and plumbing), and appliances that will stay with the home. Tour the house with the inspector, who will point out potential trouble areas, as well as what’s “sound.” If the inspection does turn up some minor flaws, a seller is often willing to make repairs, but it may depend on market conditions. Take notes as you tour. Get the inspection report in writing. This document will support or deny the contingency addendum to your agreement. You can add a home inspection contingency to your purchase agreement. This requires the seller to make legitimate repairs- or if the seller is unwilling to do so, it allows you to cancel your agreement. 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 transaction. Your REALTOR® will do this with you to make sure that everything agreed upon is completed 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 complicated process of buying a home. Don't hesitate to contact us to find out more about how we can make the home buying process easier!
Contact us for more information about first time home purchasing.