When you have been renting an apartment for some time, the idea of buying your own home is an attractive idea that you can accomplish with the right help and some insight. Here are some tips to think about when searching for and choosing the home you ultimately decide to buy.
Use Home- Search Resources
As you begin to search for real estate that fit your wish list, there are many online free websites providing home listings of real estate for sale. Once you select a few properties you want to look at in person, call the listing agent or the seller if the property is for sale by owner, and schedule a time to look at the home.
You can also take this process one step further and hire a realtor to act as your agent in the home-buying process. A licensed realtor will have access to all the homes for sale in your area and schedule a private showing with you to view any of the homes you have an interest in. When you are ready to buy a home, your realtor can assist you in making a purchase offer and complete the closing process.
Decide How Much You Can Afford
It is a good idea to look at your income and all your expenses to find out how much you can afford with a mortgage payment. Write down a list of all your monthly expenses including items, such as utilities, personal care, eating out, vehicle maintenance, and groceries.
Talk to a mortgage broker to apply for a mortgage and they can give you information about how much of a loan you can afford with your income and debt. Keep in mind your mortgage payment will include the home owner's insurance premiums and property taxes in addition to the principle and interest on the loan.
Consider a Multi-Family Property
If your finances are a bit tight, you can look at buying a home that has a basement apartment, garage apartment, or a duplex, allowing you to live in part of the home and rent out the remaining space to a renter. Buying a home in this manner allows you to get some financial help from your renters who will live in the building with you but in their own private space. You end up owning a home and building equity, and can manage the rental property in close proximity. Living next door to your renters helps you keep the property maintained and address any issues that arise with your renters.
Make sure you research how much you can rent out the second unit for to calculate how much rent you can expect to help you with paying the monthly mortgage payment. Also consider there will likely be some time that the other unit is vacant between tenants, which means you will need to plan accordingly and save up a little each month to cover the loss of rent during this time.Share