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  Buying Your First Home

Buying your first home can be an equally exciting and somewhat frightening venture in today’s marketplace. There are still many good reasons to buy a home. A careful home purchase can be a wonderful investment and a family’s most valuable asset. A venture into home ownership is important to prospective purchasers for both appreciation and for tax purposes. Most people have been told that renting can be “throwing money down the drain.” Having your own place is also a chance to develop some “sweat equity” and make improvements to the property as well as to personalize it. Lastly, home ownership is part of the American Dream—part of the perception of our country as a land of possibility and promise.

All of these reasons continue to be true in today’s real estate market as long as homebuyers follow a few simple rules of the game. The first and most important rule is to get professional help. You need the assistance of a knowledgeable Real Estate Agent, one who is experienced in working with first-time homebuyers. Now is the time to ask your friends who have purchased a home who they worked with and would they recommend that individual. It is a good idea to meet with the agent before listing and make sure they are the right person for you. This should be someone that you can talk with easily , who is open to questions, has a knowledge of the industry and the local area, and, most importantly, that you are comfortable with as a working partner. This is a person that is going to help you with a very important decision so choose wisely.

The second rule is to make sound financial decisions the first of which is to get qualified. Again it is important to talk with a skilled professional—in this case a mortgage officer or trusted banker who has come highly recommended. First find out what you are qualified to purchase given your financial background and comfort level. Never buy more home than you feel you can afford even if someone tells you it is in your budget. Next find out what type of loans are available and choose wisely. It is often a good idea to stick with a fixed rate

financing such as FHA or VA or fixed-rate conventional. Ask about your choices and choose the one best for you. This is not a good time to be speculative; it is better to make a long term sound decision. When you find the home that you want to purchase work carefully on your offer with your real estate agent and your mortgage officer. Make a realistic offer that offers value in the financial climate today. Follow your instincts but also get good sound advice.

The third rule is an old one that still holds true—location, location, location. You can change the house but you can’t change where it is located. Where do you want to live? What is convenient to you and your family? Is it important to stay in the same school district? What areas of the city seem to hold their value? Value is very important here. A good choice of location can be immensely important not only because of personal preferences but also because the area you choose is critical to your home as an investment. Look at numbers. Get your agent to show you areas that have held their value. Ultimately make your own decisions but get advice from family and friends who have lived in the area. It is better to buy a home that needs some work in a good area as long as you research price and value and know what you are buying. You can’t see every home on the market but take a look at the ones that fit your needs in location that suits you and your family.

The fourth rule is get inspections. Find out all you can about the home before you sit at the closing table. A home inspection is critical in this process. Should the home have a pool or a septic tank or any other area that is unusual or that could cause problems then you should get specialized inspections in those areas. After looking at the inspection ask the home seller to make any repairs that you find necessary. You may want to ask them to do the bigger things on the list if you think you can take care of the smaller ones.

Buying that first home can be perplexing but can also be fun and rewarding if you follow a few simple rules and obtain help. Remember to choose your professional counselors carefully, gather information about areas, make good choices financially and make sure that the home you choose passes the final

inspections. By following these guidelines you should be finding a dwelling that will be both a nice home and a good asset.