Over the years, Michael Spurr has worked with a number of clients, who are new to the buying process; buying a home for the first time is a big step, and can be daunting. Michael knows this, and for each client he strives to go above and beyond to provide extra support and education for first time buyers. This extra touch of diligence helps clients feel at ease as they delve into this big step in life!
Below, you will find the top 10 ways to prepare for home ownership:
- Know what you can afford; the rule of thumb usually tells you that if a home is equal in value to two-three times your gross income, it is affordable.
- Develop the features of your dream home wish list; then prioritize the most important features of this list first.
- Where do you want to live? You should pick out the top three neighborhoods you would like to live in. remember to take into account things like schools, your job location, safety, and recreational facilities.
- Start saving money! You need to have enough money saved to cover the down-payment, and will your salary will be able to pay the mortgage? Ideally, you should put 20% of the total price down. And don’t forget about closing cost, i.e. taxes, attorney’s fees, and transfer fees.
- What’s your credit score? Make sure you have everything in order, and have a copy of that credit score, to show history, and if there are any bad debts/late payments.
- Determine your mortgage needs; how big of a mortgage will you need? Decide which loan option is best for you; such as 30 year or 15 year fixed mortgages.
- Get preapproved; organize documents, such as W2 forms, copies of at least one pay stub, account numbers, and two to four months of bank or credit union statements so that a lender can decide whether or not to preapprove you for a loan.
- See if there are any other sources that will help with your down payment; maybe you qualify for special mortgage or down-payment programs. You can check with the local government on down-payment assistance programs for firs time buyers.
- Add up all the costs of home ownership; this includes: taxes, insurance, upkeep and utilities, and association fees.
- Find an experienced realtor who can help guide you through the process.
Michael Spurr has represented many first time home buyers; he will continue to help first time home buyers through the difficult, but doable process of buying home.
For more information about Mike’s real estate services, please give Newton Centre Associates a call at 617-965-3300.