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Tip #12: First Time Home Buying
Buying your first home in the Southwest Florida area can be a very exciting process. Prior to making your offer, you must take extra steps to ensure that you’re properlynprepared for the process.
Weigh your options
First time home buying isn’t always the best decision for everyone, even though it’s abgenerally accepted trend. It is perfectly acceptable to enter into the thought process cautiously and weigh all the options prior to purchasing.
Owning your own home is the American Dream. Growing up you may have envisioned your dream home and the family that would live in it – purchasing a home will get you one step closer to making your dream a reality.
Things to consider prior to making the decision to purchase your home:
You can deduct mortgage interest from your taxes if you elect to finance versus paying cash, which is the most significant portion of your payment.
Property taxes are deductible on your taxes.
Up until recently, the government was offering a first time home buyer’s tax credit to those that purchased in a weak economy.
Things to consider while you’re looking for your first home:
Pay attention to the home’s surroundings – next door, the backyard, and even
down the street. Make sure the accessibility is at a level that’s right for you.
Take lots of notes. Recall how you felt about a house, noting the pro’s and con’s of each and taking notice of unique elements that distinguish them.
Bring your camera – you’ll be looking at so many homes that you can’t possibly remember minute details. Take pictures so you can go over them later.
Rate the home on a 1 to 10 scale. It will keep your focused on the top rated
homes and allow you to compare from there.
Remember to stay focused on what you want and don’t get too lofty in your aspirations or stretch your home budget too much.
Avoiding short sales or foreclosures will keep you much happier in the long run more than an extra bedroom or bathroom may have.
Find an agent who concentrates on educating you in the first time home buying process.
Contact us to provide you with guidance and education throughout the process.
12 Tips to Buying Real Estate in Southwest Florida
Learn more by visiting my website or calling (239) 565-7867.
Copyright © 2010. AJ Ackerman & Associates. All Rights Reserved.
Hi Mr. Claridy, You've asked a great question and the answers are mostly a resounding yes. If you are going to ever own a home, the time is now. Right now is the least expensive time EVER to own a home. (I tried to put a link here for you, but it thought I was trying to self promote. So, put the words 'Rent vs Buy Calculator' in your search bar and you'll get a great calculator.) Put in an amount and then I want you to 'play' with the APR. Watch the change in payment with an increase of just 1%. So, the answer is....if you ever want to own a home, now is a great time. Prices are way down, interest rates are super low, and lenders are working with people with credit scores in a variety of ranges. Exciting times! Just a side note....Beginning in April, FHA fees are going up.
Owning your own home is far better than renting. When you pay your monthly rent, all you get out of it is a place to live, but homeownership provides certain tax breaks and deductions. You can do almost anything in the house you own, assuming you are not living in a controlled community where they dictate outside paint colors and sometimes even landscaping. As you pay on your home, you build what's called Home Equity and when you accrue a certain amount, you can actually ask your bank for a loan based on the equity you have.
Cash or credit? It’s the universal question in retail purchases.
This is the 10th tip in our series: “12 Tips for Buying Real Estate in Southwest Florida” which is also available as a free eBook at my website.
Whether you’re in the drive-thru at a fast-food restaurant or purchasing your groceries at the store, the quick decision is continually running through your mind throughout the day.
It’s usually a quick decision to pull out your wallet to make such a simple transaction.
Pulling out your credit card or cash doesn’t require too much thought.
Other cash or finance decisions require much thought, however…
And that’s the cash versus finance decision in regards to your new home.
In your first and all the rest of your home buying experiences, you’ll need to determine whether you will be purchasing your home with cash or financing a loan with a bank who will have the mortgage on your property.
While having the money in cash to pay for your home outright seems like a dream come true, even if you’re looking to make a substantial down payment, there are aspects you should consider before you do so.
There are points that provide support for either decision…
3.Construction and other unforeseen expenses
To learn more about these three considerations in the cash versus finance debate, download our free eBook: “12 Tips For Buying or Selling Real Estate in Southwest Florida”.
Contact our expert real estate agents today to find out what financial options you should consider in buying your home.
As a mortgage broker I feel it is better to own your own home. Pluses/Cons to both sides. You are paying for something you own vs. paying a landlord to live in his house and he make money. Owning a home, allows you to make the place your own and you have tax benefits as a home owner. But be ready to own a home which involves credit, money down (most of the time) and the desire to take care of what you are paying for. I can honestly tell you there is no better feeling in the world then driving up in my own driveway.
--Rents can go up each year.
--Your mortgage payment will stay the same each month if you get a 30 or 15 year fixed rate mortgage
--Your rent payment goes into your landlord's pocket each month
--The principle portion of your mortgage payment would go toward building equity for you. You may be able to take a tax deduction for your interest portion of your payment. Therefore your monthly payment benefits YOU, not a landlord
--There's never been a better time to buy as interest rates are at record lows, home prices have significantly dropped, and sellers have to negotiate
--Your monthly mortgage payment may end up being LESS than what rent would be for the same property!
--All the above are strong reasons to buy, but each situation is different
--The longer you plan to stay in the home, the more weight should be given to buying
--See a Realtor and/or Mortgage professional to assess your specific situation
As others have answered, it depends on your immediate situation. However, pay attention to the current housing market. There are locations that may cost you about the same or less for you to own your property vs gifting your money to the landlord when renting. If you are in a situation where you can buy and take advantage of today's low interest rates and affordable prices, why not buy?? Do make a plan, as others suggest. Talk to a loan officer and see how much you can afford. Then the numbers will make sense to you.
Renting vs Buying: How long do you plan on living in a particular area? If it is more than 2.5 years, i would say buying is better, unless you are in a declining market, then you should live in an area 3-5 years. Think about it like this: If you rent you are building someone else's net worth and not your own. Crunch your numbers, speak to a mortgage broker and see what it will cost in your area to rent vs buy. Rates are low and property values are fantastic these days!
I totally agree with everything Kimberly Hollins has to say on this topic. She is right on. It just depends on your situation...
The answer depends. It depends on your long and short term goals. If you have plans to move within the next 2 years I would say no. "If you have plans to make a house your home for life or for more than 2 years then the answer would be yes, buy it. You will always be better off buying over the long haul. You also need to take into consideration the rental market in your area. If a comparable home you plan to rent can be purchased giving you a mortgage payment less than rent then why rent?
I have a special calculator on my website to answer this particular question. Go to helpful links choose calculator and you will find some very helpful information. Call me any time I will be glad to assist you. Jacques Depart Broker