There's a lot to think about before you purchase your first home. Are you financial prepared? Are you ready to make a commitment?
Here's a list of things to think about and see if it's the right time to buy your first home.
1. How much you can afford? The cost of a home is much more than a monthly mortgage payment. There are also property and school taxes, maintenance and upkeep, utilities and home owners insurance.
2. Do you have a monthly and stable source of income? If you have any doubts or are thinking of leaving your work place. You may want to hold off. Or, if you get laid off, will you have another way to pay your mortgage, such as a savings account?
3. Do you know your credit score? If it's low you'll have to repaired it. This is very important if you plan to get mortgage. Credit scores have major impact on mortgage rates. You should look into this before you purchase a home.
4. Should you rent or buy? Use a loan calculator. You'll be able to figure out the home purchase price, loan amount, length of loan, interest rate, property tax and other costs. It will estimate what your mortgage will be and you'll find out if it's cheaper to rent or buy.
5. Do you know about the first-time home buyers $8,000 tax credit? You must be in a signed contract before April 30th 2010 and in closing by June 30th 2010. Buyers must meet certain qualifications to be eligible.
6. Do you know what the homes are selling for in the areas you're interested in? Search for Real Estate in Ulster County NOW - research the homes and areas you're interested in. Then contact your realtor to find out more information such as the median price of a home that is selling for in the neighborhood.
7. Have you talked to a mortgage lender? It won't take long to talk with a mortgage lender to see if you can get pre-approved for a mortgage. And, right now interest rates are low.
It's better to prepare yourself before you start looking for your first home, and when you find the home you want, you'll know that you can afford it.