Purchasing a Home? Here's a Few Tips

Purchasing a home, especially for the first time, is an important financial decision. Choosing a fix-up property can oblige you to extensive renovations and/or costly repairs while

1. Evaluate your finances.
It's standard to review your finances so you have some idea of the budget you'll be working with as you search for a house. However, it's also important to communicate with your lender and get a letter of pre-approval before you begin your search. Don't make the mistake of falling in love with a home without being able to make a serious offer on it. Get your paperwork in order first, so you'll have clear expectations about what you need and what can you offer.

2. Don't make an offer on a "fixer-upper" without thinking of the financial implications.
Renovating a home can be a fun and worthwhile project, but don't forget to calculate the cost of repairs, renovations, and time spent first. You can get a great deal on a home and end up using up those savings in repairs you didn't anticipate. Pay close attention to the home inspection and get estimates on any repairs you plan on doing.

3. When you calculate your budget for a home, make sure to consider the additional expenses homeowners have.
If you fall in love with a home priced at the top of the budget, make sure you consider the additional expenses of homeownership such as property taxes, fees from a homeowner's associations, and normal upkeep and maintenance of a home. If these calculated expenses put you over budget, consider other options. New homeowners will sleep easier at night knowing they have a solid financial buffer.

4. Use a real estate agent and an attorney you trust.
It's important that you have experienced people to help guide you through this process. A good real estate agent is invaluable when investing in a home. Your agent should be experienced with selling homes in the area you're looking to purchase in and easily available over phone.