Advice On Buying Your First Piece Of Real Estate
Buying real estate is something that a lot of people want to get into. For the first-time buyer, sometimes he just does not know how to get started. There are so many things to learn and so many things to consider. If you are in that situation, this article can help you. Continue to read to find out what you should think about when you want to buy your first piece of property.
You want to buy, but are you ready to buy? Typically, you will need enough cash for a down payment. This can be between five to twenty percent of the purchase price of the house, depending on the type of loan that you are able to get. Also, you need to figure out if you can afford the monthly mortgage payments. These payments must be made every month before the deadline. Otherwise, you incur finance charges that is an additional expense for you. Remember, this house is a long-term commitment. Your loan will typically be 15 to 30 years long. Be sure that you are mentally and financially prepared for the commitment.
Learn whatever you can about the buying the process. There are many books written for the home buyer. Be sure that you get information pertaining only to real estate in your home state because different states have different laws. Your real estate agent can walk you through the process, but remember he is working on commission. The more you pay for the property, the more commission he makes.
Think about how big of a house you can afford. If you have plans for a growing family, you should get a house that can accommodate growth. Some people like to start with a smaller home, then upgrade to a bigger one as their family grows. However, you have to deal with selling your old house before you buy your new one, and sometimes timing everything just right can be tricky. The real estate broker will also charge you a sales commission. You can save yourself the hassle and the broker’s commission if you purchase a house that can grow with you. It is really up to you.
If you have any friends who have just purchased a house, ask them about their experience. Find out what they think they could have done better, and learn from it.
Your real estate agent is able to tell you the average selling price of homes in your neighborhood. Location, size and updated house features will affect the price, but be careful not to pay too much premium for that. You do not want to buy the prettiest house on the block if it is also the most expensive.
Your house is probably going to be your biggest investment. You should spend more time learning about what qualities to look for so you can recognize a good value. Apply the advice from this article, and you will be off to a good start buying your first home.