Factors to Considere When Buying a First Home

by Vipul Pawani 07/02/2017

Many factors come into play when determining whether you can afford to buy a house. Since the monthly rent for an apartment is often close to what a mortgage payment would be, you can't help but wonder if your rent money would be better spent building equity in your own home.

While this is often the case, first-time home buyers often underestimate or overlook expenses that accompany home ownership. Although a mortgage broker or bank loan officer can help you calculate the maximum mortgage you can afford, here are a few tips to keep in mind as you weigh your options.

  • Create a detailed budget. By taking the time to figure out how your income stacks up to your monthly expenses, you can get a clearer picture of your financial situation. If you have a good credit score, a positive monthly cash flow, and enough funds to pay closing costs and a down payment, then home ownership may be a viable option. (Your credit score, which you can obtain once a year for free from the three main credit reporting companies, will have a major impact on both your interest rate and your monthly mortgage payments.)
  • Factor in other expenses: Figuring out your current budget is relatively easy, but predicting your future budget as a homeowner can be a lot more challenging. A big part of the equation will depend on the amount of property taxes and school taxes that will be tacked on to your mortgage costs. A real estate agent can provide you with those figures, as well as other information you need to calculate how affordable it would be to live in a particular house. They have access to a wide range of relevant information, such as utility expenses, water bills, and homeowner association fees (if there are any). Since property taxes sometimes cover the cost of services like garbage and yard waste collection, you may not have to factor in those items into your projected budget. Your real estate agent can help you come up with a rough estimate of home maintenance costs -- especially if they're familiar with the history of the home you're considering buying. As the process moves forward, a property inspector can provide you with more details about the condition of the home and whether any costly repairs are likely to be needed soon.
  • Home maintenance and furnishing costs: Other possible expenses to consider when estimating the cost of home ownership include yard maintenance, landscaping, HVAC service calls, electrician services, plumbing repairs, and homeowners' insurance. If you're a first-time home owner, there's also a good chance you'll need to buy some furniture to fill out those additional rooms!
    • Buying your first home definitely takes a lot of planning, budgeting, and research, but the rewards of owning your own home will more than justify the effort!
    Buying A Home
    First Time Buyer
    Hints For First Time Buyers
    About the Author
    Author

    Vipul Pawani

    Vipul (Veep) M. Pawani, to his clients and friends, is an optimistic and upbeat agent who is assertive and exceptionally motivated to deliver on his clients’ goals. Exclusively serving Woodridge, Prince William County and, Fairfax County, Veep has experience in sales and marketing, which benefits his clients greatly. Currently partnering in a family business of hotel development, Veep draws upon his multifaceted corporate and professional skills when working with real estate. An area resident for 25 years, he credits the friendly people and the family atmosphere as a few reasons why it’s a great place to call home. He is active in his community and is a member of the National Association of REALTORS® The combination of Veep’s honest approach, commitment to customer satisfaction and his knack for business confirm the decisive edge. Professional and experienced, Veep Pawani is here to offer you nothing but top quality service, dedication and success in all of your real estate needs. My website has a ton of resources that can help you search for your new home. Feel free to use my website, free of charge and with no strings attached. If you need representation or just have any questions at all, I’m always here to help. Please call me today at 703-980-0249