There are many exciting and fun aspects of buying that first home, such as looking at different houses, thinking about decorating and purchasing new furniture. On the flip side, it's expensive to buy a home and you might have no idea what to expect. If you are feeling a bit nervous, here is some helpful information.
You probably have some pretty clear ideas in your head about the style and size of home you want and perhaps even an ideal town or neighborhood, but before you start hitting Open Houses, you need to figure out how much you can afford to spend. Pre-qualification can be a helpful tool for getting an idea of your mortgage costs. This is a simple process where you contact a lender by phone or perhaps online and give them a very general picture of your finances, and the lender gives you a very general idea of how much of a loan you might be able to secure.
Many people mistakenly believe that pre-qualifying means you absolutely can get a specific loan amount. It doesn't. It's just an estimate of how much you might be able to borrow, but with this in mind you can begin crunching numbers and setting up a reasonable monthly budget. First you need to write down every monthly expense you have. This includes car payments, utility payments, cable payments, gym memberships, student loan expenses, gasoline costs, food costs, entertainment expenses and much more. Remember you will be paying property tax for the home and you also will need homeowners insurance. Many houses also are located within an association, and there could be a hefty monthly fee for this as well.
From there, your next step is to actually sit down with a lender and get pre-approved for a loan. This process takes longer than pre-qualification, and the lender will review your finances and credit score carefully and determine an amount that his bank is willing to lend you. It's best to do this prior to house shopping because it provides your realtor of a clear picture of your budget and it helps when you negotiate with a seller.
You need to program yourself to think logically about every home you view. The most important aspect is always the location of the home simply because this can never be changed, so it is crucial to like the area. You cannot change the size of the yard either and usually you cannot increase the size of the home. On the other hand, there are many things that can be changed. Wallpaper and carpeting can be removed, flooring can be upgraded, walls can be painted and sometimes even eliminated to open up a space. Don't become distracted by ugly wall colors or tacky decor, this can easily be fixed. You can replace appliances and countertops and upgrade flooring, but you cannot move a home to a better spot.
If you are searching for a location that is truly desirable, consider a move to Texas Hill Country. With scenic, historic small towns such as Fredericksburg and bustling metropolises such as San Antonio, this popular region offers something for everyone. At Nixon Real Estate, the realtors specialize in finding Kerrville real estate, Fredericksburg real estate, San Antonio homes for sale or homes anywhere in Texas Hill Country.
You probably have some pretty clear ideas in your head about the style and size of home you want and perhaps even an ideal town or neighborhood, but before you start hitting Open Houses, you need to figure out how much you can afford to spend. Pre-qualification can be a helpful tool for getting an idea of your mortgage costs. This is a simple process where you contact a lender by phone or perhaps online and give them a very general picture of your finances, and the lender gives you a very general idea of how much of a loan you might be able to secure.
Many people mistakenly believe that pre-qualifying means you absolutely can get a specific loan amount. It doesn't. It's just an estimate of how much you might be able to borrow, but with this in mind you can begin crunching numbers and setting up a reasonable monthly budget. First you need to write down every monthly expense you have. This includes car payments, utility payments, cable payments, gym memberships, student loan expenses, gasoline costs, food costs, entertainment expenses and much more. Remember you will be paying property tax for the home and you also will need homeowners insurance. Many houses also are located within an association, and there could be a hefty monthly fee for this as well.
From there, your next step is to actually sit down with a lender and get pre-approved for a loan. This process takes longer than pre-qualification, and the lender will review your finances and credit score carefully and determine an amount that his bank is willing to lend you. It's best to do this prior to house shopping because it provides your realtor of a clear picture of your budget and it helps when you negotiate with a seller.
You need to program yourself to think logically about every home you view. The most important aspect is always the location of the home simply because this can never be changed, so it is crucial to like the area. You cannot change the size of the yard either and usually you cannot increase the size of the home. On the other hand, there are many things that can be changed. Wallpaper and carpeting can be removed, flooring can be upgraded, walls can be painted and sometimes even eliminated to open up a space. Don't become distracted by ugly wall colors or tacky decor, this can easily be fixed. You can replace appliances and countertops and upgrade flooring, but you cannot move a home to a better spot.
If you are searching for a location that is truly desirable, consider a move to Texas Hill Country. With scenic, historic small towns such as Fredericksburg and bustling metropolises such as San Antonio, this popular region offers something for everyone. At Nixon Real Estate, the realtors specialize in finding Kerrville real estate, Fredericksburg real estate, San Antonio homes for sale or homes anywhere in Texas Hill Country.
About the Author:
Pammy McGrath likes reading real estate blogs. If you are looking for licensed real estate Fredericksburg TX agents, or to discover a homes for sale in Fredericksburg TX, please check out the NixonRealEstate.com site today.
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