Monday, May 18, 2015

Advice for First-Time Home Buyers

For many people, buying their first home feels like a leap of faith. It’s a huge commitment, and they often make the decision only after mustering up a tremendous amount of courage. While it is true that buying a home usually takes a mindset of bravery, one must remember that discretion is the better part of valor. So for those who are ready to step into the competition to win their first home, Vahe Hayrapetian has provided some tips.

Determine and Stay within Your Financial Limits

It’s a basic financial principle, but many young couples or families conflate their wants and their needs. They may think that in buying a four-bedroom house when they need only two, they are setting the foundation for the future growth of their family. While there is nothing wrong with investing for future plans, they should also consider the financial strain they could experience. As much as possible, think objectively; determine how much income you make, how much expense you can afford, and, if possible, for how long you want to pay your home loan. A financial expert can help with this aspect.

Learn about Different Mortgage Possibilities

Once you determine your budget, you will want to learn how to work with it. When you have a specific idea of your financial limits (with current and possible future income accounted for), you’ll want to know what home loan options are open to you given those limits. You will also want to consider your long-term plans: if you intend to stay in your home for 3 decades or so, you may want a fixed mortgage. On the other hand, if you plan to move to a new home within a few years, an adjustable rate mortgage might be better. Again, it’s best to consult an expert about this. There are many other considerations to make. You may want to factor in proximity to relatives or life-stage critical facilities such as elementary schools. However, Vahe Hayrapetian advises first-time home buyers to take the two above seriously.

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