To People Who Want to Buy Their First Home But Don’t Know Where to Start

Owning a home is the ultimate desire of everyone but when the time comes first time buyer get confused from where to start the process. What you would think that at some point during a formal education someone would sit us down and explain to us how to buy a house? No it never happens. One in a thousand may be lucky to have someone to talk about that but the majority of population stumbling around with their wallets open hoping a house false into their laps. First time buyers wish that someone sit with them and talk about home buying process. We are the one who helps you as your guider in every step of home buying procedure. 

One tool that you can use in this process is Consumer Finance’s Owning a Home tool. It walks you through each step of the process and allows you to double click into words or topics you need more information about. Moreover it has printable worksheets that you can use during the meetings with lenders, Real Estate agents and your attorney. But before actually going in the home buying process the very first thing you have to decide to actually buy a home.

Before you decide to buy a house these five questions you have to ask yourself.

1. Do you have a job and have you had it for a while and does it remain for a while longer? This question is very important for a few reasons. When you actually going to buy a home you have to be able to pay your mortgage and to do so you need steady job. So having and keeping a job should be number one priority in this plan. If you have bad work history with full of transitions or holes it might throw up a red flag to your lender. Due to your bad work repetition they might require you to jump through more hoops to get approved your mortgage and in severe cases they could also end up with a higher interest rate. If a big part of your salary is based on bonuses, in some states you have to be the part of company for at least 2 years to count bonuses as part of your income. For instance, if a person doing a job for 18 months and receive a 10% yearly bonus this will not include in his income. This will affects how high of a loan you can qualify for so in these states you might have to wait until you have been at a company for a year or longer before applying for loan. If you are not sure that this rule apply in your state or not call your bank or a lender you are considering for your home mortgage. They will guide you what rules apply in your state.
2. Do you like where you plan to live enough to hang out there for at least 3 years? Home buying is not kids’ game but rather it is a kind of long term commitment. Mostly an average first time home buyer spends 5-7 years in their first home. Obviously nothing is sure but you have to keep these figures in mind. These are not just estimations but because of the money you put down to buy a house like down payment, inspection fees, closing costs etc. signify a pretty considerable opportunity cost and it’s going to take a few years to recuperate that value within your house. This is not mandatory though, there might be some good options after 1 or 2 years. May be you get a fabulous opportunity across the county and decide to leave.
3. How broken are you really? If you lost your job tomorrow could you float on your savings for 4-6 months? Nothing is permanent! So the jobs are. What happen when you buy a home and lost your job how could you survive in this scenario? This is the most important question to ask yourself when plan to buy a home. After losing your job if you are unable to find the new one in 3-6 months be prepare in advance. Multiply your monthly expenses funds to 3 months and you easily find that this mess is expensive and kind of a big deal to handle. The biggest risk in buying a home is dependence on your financial security. You are the one pay for fixes, maintenance or updates so you must have to be stable financially and a cushion so you can afford whatever comes your way and of course that might mean putting off your new home buying dream for a while.
4. Is this your forever home or just a place you want to live for a while? Many people are curious to know whether renting or buying is better. A highly recommended this interactive calculator from New York Times. Just because owning a home is the old American dream doesn’t mean it is right for you. But if it is remembered that most of first time home buyers won’t stay for more than 5 years. It is better to consider your first purchase as an investment opportunity. Buying a house is a business opportunity and forever home is an emotional purchase, may be you are imagining holidays around wood burning fireplace, drinking coffee at a marble island or sipping cocktails on the terrace but it always not come true. Because if you buy your first home with this mind you are going to be miles away of the rest when it comes to buying your second home.
5. What’s your next plan after buying? Always keep a bigger picture in your mind. Determining your plans helps you to apprehend your goals in buying next home after the first one. This is an opportunity for you to make a little bit or lots of bits of money in a few years so keep thinking about your options. Is this property worth holding or do you want to sell it- in which case you want to become a landlord?
6. After asking all these questions to yourself if you are like, “yes I am in” then you are ready to buy your first dream home. Make up your mind and then finalize the plan that really suits you regarding your comfort and financial criteria. Think over again and again to dodge any regret that you will have to face in your future. The process of home buying in NJ includes many steps and complications so it is best to hire some professional and well-reputed real estate agent who holds good knowledge about your buying area.