First Time Home Buyers Guide

Planning for Home Ownership

First things first

Begin your shopping with confidence by knowing what you can afford. Contact us today to find out about UpFront Approval* and your home buying affordability.

Second things next

Here's what lenders must analyze as they consider a loan request:

  • Based on your earnings and debt, lenders calculate your approximate borrowing limit. Mortgage payments, property taxes, hazard insurance, etc. should not exceed 28-30% of your monthly gross income; these are known as housing expenses.
  • All other debts such as car payments, student loans and credit cards are then added to your housing expenses. This sum should not exceed 36-38% of your monthly gross income. If it does, don't panic, it may only reduce the amount of the loan for which you may qualify.

Describing the Dream

Once you have a good idea of how much home you can afford, it's time to start figuring out what features are the most important. We can help turn your desires into an organized list that will help you evaluate your options. It's time to ask yourself a very important question -What am I looking for in a home?

Searching for your dream home is exciting, but there is no magic formula for determining which home is right for you. The home shopping process is much more subjective and intangible.

What is important to you?

To help you through this phase, we're pleased to present you with some housing preference considerations.

Getting it all down on paper is sure to help! Our Buyer Desire checklist will help you create a 'Wish List' that you can give to your real estate professional to find houses that meet your criteria. If you already know 'what is important to you' go to the Buyer Desire checklist and print it out.
If you would like some suggestions and considerations... read on.

Considerations...

Location, location, location

To narrow down the possible destinations in your area, start with the broad strokes such as price range and general locale and then fill in the details such as neighborhood, features, and type of ownership (condo, townhome or traditional detached house).

For many, quality of life factors such as proximity to schools and work are important, but if you're concerned about resale value, focus on location and neighborhood.

There is no single factor that affects the value of your home more than location. Most buyers are willing to sacrifice desired home features and preferences to get into the area or neighborhood they want to live in. This makes sense: You can always add an extra room or a swimming pool later. But once you've moved in, no amount of home improvements can move your house from the city to the suburbs, or from the east side to the west side.

What should you look for in a neighborhood?

Here are the seven top characteristics that potential buyers look for when choosing a neighborhood to live in, brought to you courtesy of a recent survey: Source: Newspaper Association of America

  1. Good schools
  2. A 'good' or 'better' neighborhood
  3. Close to shopping
  4. Proximity to work
  5. Close to family/friends
  6. Low crime
  7. Close to parks/recreation

Tips

Picking the right neighborhood will require plenty of diligence on your part. To do it fast and smart, try some of these tips - then go with your gut.

  1. Get a detailed map. Locate the schools, parks, shopping areas, hospitals. Just go to mapquest.com and enter an address to creat a map of the area.
  2. Visit, Walk around, Drive around. Vist the local neighborhoods at different times, during the week. Check out the morning drive on your way to work and evening commute on your way home. Do you like the way the neighborhood was planned? Does it appear safe and well-lit? Are you impressed by the conditions of the houses and yards you see?
  3. Ask friends and co-workers what they know about the area. Someone may already live there or know someone that can give you the 411.
  4. Grade the schools. Contact the local school board. Here are some points to consider: average class size, enrichment programs, special needs programs, standardized test results.

If you haven't created your Buyer Desire checklist (pdf file), now is the time to put your thoughts and ideas about your ideal home down on paper.