on Monday, October 29th, 2012 at 5:05pm.
So you're starting to get settled in your career of some sort and beginning to look at housing for sale. Owning a home is part of the American dream and is a goal almost everybody would like to achieve in their lifetime. Currently, in the aftermath of the housing market collapse of 2008, housing for sale in the United States is still very affordable for anybody in the market for a new home. Mortgage interest rates are lower than have been in previous years. These low rates, coupled with nationwide lower priced properties, have created what many view as a prime buyer's market and an excellent opportunity for anybody looking to purchase their first home. Many first time home buyers are even opting to bypass small starter homes for homes they'd like to be in for years.
Purchasing a home can be a daunting task for anybody that hasn't done it before. Making a poor purchase decision can affect a homebuyer for the rest of their life so it is important to be a well researched and well informed buyer. When you first start looking at housing for sale, regardless of the real estate market, you need to evaluate whether or not you'd be better off renting or buying. Most people assume owning a home makes more sense economically than renting because renting is supposedly throwing your money away. Yet, Forbes.com shared an example where buying can be less beneficial to one's situation than renting--this is sometimes the case when the buyers plan to move quickly. In my cases, however, buying a home is a great investment, though the sometimes grueling process makes it necessary that buyers are committed.
Young buyers looking for housing for sale can be vulnerable; they need a quite capable realtor and they need to be smart themselves. Be sure to do the math and know exactly what your mortgage entails and what your options will be if you decide to move again in the future. Economically, buying a home may be a better option, but be sure to stay within your price range. A common rule of thumb is to look at housing for sale that runs about two-and-one-half times your annual salary. Talk to your mortgage lender to get an accurate measure of what you can afford and what your monthly payment will be. There are also financial calculators online that can give you an idea of how much your price range should be. Also be sure to address your credit history well before you start looking to buy a home. Good credit takes time to build and be sure to take care of any credit problems you may have well before you start shopping for homes.
Hughes Group realtors enjoy working with first-time home buyers, helping them achieve their real estate dreams. They get to know their clients: what their goals are, what they like and dislike in a community, neighborhood, and home. Here's more of what first-time home buyers need to know before they buy. Find an agent you can trust and hit the ground running.