The 12 Step Program for First Time Buyers – Part 2

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs

In the last article we started our list of the best tips for the first time home buyer. Here is the second set of 6 tips.

Step 7: Don’t be afraid to commute. Many metro areas are far too expensive for home buyers. Instead, think commute and accept the fact that the time spent commuting is worth being able to save more money and stay financially stable.

Step 8: Buy what is real. If a builder is promising a home will look like this, but all you see is a foundation, you may want to wait until the home is built. There are so many things that could go wrong and you do not want to be stuck with a home you hate once it is finished. Pictures are far different from the real thing.

Step 9: Renting versus buying. If there is a chance that you will not be able to afford the mortgage payment, then sit down that pen and walk away. It is completely acceptable to rent a home versus buying a home. There are plenty of landlords that are willing to sign long term leases while you save more money. Rent to own homes are another great option.

Step 10: Understand the rules, regulations and terminology. If you are reading out points and rates, payments and insurance and have no idea what you are reading, do not leave it to the real estate agent to explain these terms. The real estate agent has been trained for years to understand the real estat buying process and a short lesson will not do the buyer justice. There is power in understanding a legal document.

Step 11: The co-signer. If you cannot qualify for a mortgage you are sure you can afford, why not ask a family member to co-sign for the home mortgage. As an exchange, you can offer the home out for a week a year as a vacation spot for the family member free of charge.

Step 12: The two person mortgage. Buying a home with someone you are not legally bound to is a strong attachment that could go wrong. The first time home buyer needs to think long and hard about the relationship before entering into a mortgage agreement.

Buying a home is about more than just having a piece of real estate. It is an investment that requires a long term commitment, kind of like having a child.