One of the first things on a newlywed couple’s mind is a buying a first home. However, most newlywed couples aren’t in a financial position to be able to afford mortgage payments or are in transition and may not be staying in an area for a long enough period of time to justify buying a home. Before starting on the home-buying adventure, newlywed couples should consider carefully whether or not they are in a position that will allow them to afford a mortgage.
One way to determine this is to speak to a mortgage consultant or loan officer. By reviewing your financial history and situation, a mortgage consultant can determine whether or not you are in a position to afford monthly mortgage payments. However, it may not be in a couple’s best interest to take it on a mortgage consultant’s word alone. It may be wise to test it out. Get an idea of how much your monthly mortgage payment might be in your current financial situation. Try an experiment for a few months by saving the difference between your current rent payment and a mortgage payment. If you can comfortably afford the difference, it may be a good indicator that you are ready for the financial responsibility of home ownership. A mortgage payment should usually be no more than 30% of monthly income.
If you feel strained by the added cost each month, there is still something you can do to prepare for future homeownership. Save. The days when mortgage companies offered easy 100% financing are long gone. Due to the current economic climate, lenders have become more and more regulated in what they can offer to home buyers. It is almost impossible to buy a home without a sizeable down payment. You will need a down payment. If you aren’t quite financially able to afford a mortgage payment just yet, start saving what you can and put it towards a future down payment.
Once you have successfully determined that you are financially able to buy a home, you can begin the home buying process. Because a home is likely the most important investment you will ever make, make sure to research carefully all aspects of the process so that you are well educated and informed. The process should begin by making sure you and your spouse our on the same page. Discuss your wants and needs in regards to your ideal home. Discover what aspects you are both willing to compromise on and what you are unwilling to compromise on. Discuss the types of locations you both would like, size of home, and other aspects. This will greatly help in the house hunting process.
One common mistake for first-time homebuyers is not becoming pre-qualified or pre-approved before beginning the house hunting process. Pre-qualifying means that a lender has reviewed your financial situation and has given you a general idea of how much you can afford to borrow. Pre-approval means that the lender has carefully gone over your financial situation and history and has pre-approved you for a certain amount. With this in mind, you will have a better idea of what to look for and will be less likely to fall in love with a home out of your price range.
Begin researching homes and attending open houses. The internet is always a great resource for research for real estate. However, it is important to never make a decision based simply on what you see online. The internet should be used as a tool for seeing what is out there and narrowing your general search. If you’re nearby, take a drive through a neighborhood that you both like and look for homes that are for sale. It might be a good idea for newlyweds to look for short sales, pre-foreclosure, and bank-owned property. Because the previous owner has not been able to pay their mortgage, sometimes the bank will be willing to negotiate a price less than the cost of the mortgage.
Though some people prefer to navigate the complicated road of home buying alone, it is advisable for a newlywed couple to consider finding a good real estate agent. A trustworthy and experienced agent can be an invaluable asset in helping you find a home that is best for your needs. Don’t rely on internet sites to find a good agent. Talk to friends and family and see if someone can give you a good recommendation. An agent can help you negotiate and can predict problems and help you avoid them before they arise.
Looking for homes can become tedious, but don’t loose patience. Chances are you won’t find the house you want right away. Also, consider the fact that you may be living in your new home for several years. You should be happy with the purchase and the neighborhood. Take your time in making a decision. Don’t expect to find a perfect house, just a comfortable one. Be willing to negotiate with each other on the final details. If you get too frustrated, take a break for a while. Remember that this is an investment. You want the value of your home to appreciate. Take the time to research the area and find out what the demographic might be like in ten or more years.
Once you find a house that you have carefully researched and decided you want to live in, don’t be afraid to negotiate. If you’ve hired an agent, they can do this for you. In your negotiations, factor in things like needed repairs, closing costs, and home inspections. Sellers usually expect to negotiate their asking price. Careful and conservative negotiations can save you thousands of dollars. However, don’t try to lowball the sellers with ridiculously low offers. This will only hurt your chances of getting the home.
Remember, this house will be your future. You and your future family will be growing with the home and creating memories. This is a big step, but an exciting one. Don’t get so caught up in all the steps and regulations that you forget to enjoy the process. Have fun with it!
RE/MAX Louisiana (http://www.remax-louisiana.com/) provides buyers and sellers with real estate maximums quality professional service. Art Gib is a freelance writer.
[tags]louisiana real estate[/tags]
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