This "First Time Homebuyers' Manifest" is intended to be one's simple guide to becoming an ecstatic and overjoyed homeowner for the first time in their lives. We will discuss a couple of key components that should be integrated within the homebuying process to help ensure a successful home-seeking pursuit concluding with a well placed property purchase. These key components will be in the form of questions that should be pondered on by the homebuyer throughout the entire home buying process. In other words, I'm serving you a question component stew as your food for thought.
Location, Location, Location!
There it is folks. "Location, location, location!" This initial key component of our first time homebuyers' manifest is clearly not a question, however, it is the most important to remember. When a homebuyer purchases his or her new home, they are also buying the lot on which that particular home sits upon. That property is quite literally the location itself. After closing on a home purchase, the new homeowner, if they so desire, has the ability to change virtually anything they may have previously been unsettled about, except that location by which the property is bound. It's imperative that the prospective homebuyer remains vigilant in their research and background assessments of their possible future neighborhoods, districts, counties, etc. they'll be choosing to move into. There's an enormous difference between Rodeo Road (Ro-Dee-o) of Crenshaw versus Rodeo Drive (Roh-DAY-oh) of Beverly Hills. Remain vigilant. I'm just sayin'.
"Location creates desirability, desirability creates demand, and demand raises property prices." (GW Legal, Jan/13/2020, Solicitors Regulation Authority)
What Is Your Financial Status?
In other words, how is your 'economic health'? You should be prepared, through and through, for the full on purchase of a new home. In addition to that, you need to be prepared for the never-ending expenses that come along with that home purchase. A full financial audit of your economic standing is essential for the preparation of these things to come, and rest assured, they're coming. A prospective homebuyer needs to be financially sound before the thought of even window shopping for a new home comes into play. Financially sound means a savings account cushion of at least 3 months worth of living expenses without batting an eye. Three months is even pushing it. The upfront costs of purchasing a new house such as the down payment and closing costs are enough to make sturdy knees buckle like lawn chairs if one isn't substantially prepped, primed, stacked, and packed.
What Type of Home Are You Looking To Buy?
Are you looking to buy a single-family home? Depending on how your self-audit turned out, would you be looking to purchase an existing home, from the previous homeowners? Or would you rather purchase a new construction home? Would you be interested in a 'build and buy' deal? If you would prefer this type of home pursuit, could you even realistically afford that option? Ok, so maybe the single-family home isn't even the type of home you had in mind. You're more interested in a condominium purchase, possibly even a townhouse. Keep in mind, a house or townhouse that is in need of some remodeling work, maybe even on the light side, is a possible way to save money on the purchasing price. The amount of risk involved versus the potential reward possibly gained is that all too familiar conundrum "ping pong volley".
What are Your Mortgage Qualifications?
Before you start shopping for a home, you may want to put your focus on shopping for a lender. First of all, you really should focus on finding out just how much could you possibly receive from a lender toward your first home purchase. You and your lender might not be on the same page regarding your economic stability and affordability. The lender would be taking into account any possible debt you might owe, therefore obscuring their perception of your financial health and exactly what or what not you may be able to swing. Again, this is why you prepare, and audit in spirit of preparation so that you will not be caught off guard or blindsided by every little bump in the road or obstacle suddenly appearing out of seemingly nowhere.
The first time homebuyers' manifest isn't completed with the publishing of this article. There are still remaining key
components needing to be discussed and will be discussed in the 'not so far future' to come. For the time being, simply chew on these few simple bullet points we have just covered and feel free to open any dialogue about this subject matter or any other real estate topic of you interest in the comment section below!
