Skip to main content

Your First Home: Step 1-Decide To Buy


A person’s firsts are so iconic-your first car, your first kiss, and especially your first home. It is the most memorable and equally terrifying experience for buyers. You can ask any buyer, even if the process is the same for buying each house there is no time quite like the first time. One of the biggest reasons to purchase your first home is to start building your wealth.

What are some fears about buying your first home? I can’t afford to buy a home right now. I should wait until the real estate market gets better. I don’t have the money for the down payment. I can’t buy a home because my credit is not good. I can’t afford to buy my dream home. I should wait to buy a home until I get married. Buying a home seems way to complicated.

You can’t afford to not buy a home right now. If you don’t own-you rent right…and you will pay less owning a home monthly than renting with tax savings. There is never a wrong time to buy the right home. Real estate is a long term investment and trying to time the market in the short term will make you miss the long term investment. There are a wide variety of down payment options available for you. You could buy a home with as little down as 5% with some loans, its true. A less than perfect credit score won’t necessarily prevent you from buying a home. A good loan officer can work with poor credit history or no credit history, ask around. The best way to get closer to buying your dream home is to buy your first home. You work your way up to your dream home by building equity in your first home. There is no reason to wait. Regardless of you being married or unmarried in your future-being a home owner is a great decision. Buying a home is complicated, but that’s why you have help. Trust your real estate agent to help you through this process-that’s what they are there for.

So I mentioned building equity, do you know what I mean when I say that? That means that when you purchase a home for $150,000 dollars with a $15,000 down payment and a 30 year loan-there is $135,000 debt and $15,000 equity at the beginning. As you pay the home off, debt converts to equity and part of your net worth. After 30 years, you are worth $150,000 plus other assets you own. Another great thing about equity is your equity grows as your home appreciates in value. So if by the time you pay your loan off, your $150,000 home is worth $486,000-well your net worth just increased. Net worth becomes more important as you get older and have children and plans to distribute your wealth after your passing.

There are four principles in the buying process: The rules of real estate are always local, the best deals are usually win win, Price and value are not the same, and choose with your heart and your head. Doing real estate in Texas is a lot different than doing real estate in Orange County-don’t compare the two if you plan on buying in Orange County. Create an outcome that the sellers win as well as the buyers, the process of buying a home involves everyone on a major level. You may have to overpay for your home, but if it is the closest to perfect home for you-it has a lot more value and is worth the price. Your heart will love the home, your head will love the value-make sure both are happy.

This is step 1 of 8 in buying your first home-join us next week for step 2!

Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
Reference: Your First Home by Gary Keller

Labels

Labels:
Location: Orange, CA, USA

Comments

Post a Comment

Popular posts from this blog

Your First Home: Step 8-Protect Your Investment

Welcome to the world of home ownership, besides feeling like you signed your life away-how does it feel? You may find yourself feeling pride of ownership, because you now in fact own something. But with great power comes great responsibility-home maintenance. One of the best resources for you, even after the transaction, is going to be your real estate agent. Chances are, if you need a specific kind of vendor-they have one they trust and can refer you to. Home maintenance falls into two categories: Keep it clean and keep an eye on it. Review the maintenance needs for your home once you are settled in plan for regular service. If you notice something different, investigate it and fix it. A small problem not treated turns into a massively more expensive problem when ignored. Be sure to also read your home warranty, some of the repairs that come up may be covered. Also, have reserves set up for “Life Happens” situations. Finally, the most important part, Housewarming Party! Nothing w...
Post a Comment
Read more

Your First Home: Step 7-Close

We got through the home inspection, that was intense. What’s next? Why, title and appraisal of course! We are in the home stretch; you can do this. As the lender is finalizing the mortgage, they are doing a little bit more digging: appraisal to confirm the value, survey to confirm the boundaries, title to verify ownership, and title insurance. Appraisers will look at the home and comps to determine what they think the home is worth and relay this to you and the lender. The lender will only write a loan for the home’s appraised value, so if there is a difference between selling price and appraisal price-buyer and seller have to come together to cover the gap. Therefore, it is important to create a win-win situation, both parties have to work together at times. Survey is to determine where the homes boundaries are and are not. You would be surprised how many times a neighbor’s fence may be on your property due to boundaries of each property being forgotten over time and various homeo...
Post a Comment
Read more

Is Real Estate a Trade or a Profession?

On Friday, there was an article on  Inman news  (behind a paywall) asking, "Is Real Estate a Trade or a Profession?", specifically it was compared with journalism, below is a segment:  After all, he reminded us, one does not need a degree to be a journalist. There are laws regulating libel and individual privacy, and journalists are expected to comply with those, but there is no professional standards organization, no state or federal licensing, no real job requirements at all except, presumably, the ability to tell a story and convince an editor (and your readers) that you’re good at it. This has become increasingly apparent in the digital age, when editors are no longer gatekeepers dictating who has a platform to tell a story. The emergence of the Internet and blogging has given anybody who chooses to say something a way and means by which to say it. He pressed us all semester: What was the difference between an amateur blogger and a professional journalist? Could we ...
Post a Comment
Read more