It is such an overwhelming process when deciding to buy a home when you are a first-time buyer. This is especially true when the market has seen marked changes. The slower homes sales may indicate a buyer’s market; but how do you know if that means the time is right for you to look at homes on the market? There are some essential facts you need to know before deciding the right age to buy a home in Woodstock, NY.
Know Your Financial Limits When Looking at Homes
Knowing what you can afford to spend on the homes you view is critical, but not as simple as it sounds. You need to have a solid understanding of things like your credit score, cash on hand, and pre-qualification for a mortgage. Understanding the types of mortgages available, and your ability to carry them long-term is essential. The list prices of the homes you are looking at are only a small piece of their overall cost.
Know Your Closing Costs When Looking at Homes
In addition to the list prices of the homes you see, you will also need to pay for closing costs, private mortgage insurance (PMI), taxes and insurance. PMI is required if your down payment is less than 20% of the cost of the home. Avoiding PMI can save you a lot of money in the long run. That’s why you want to be aware of exactly what you have to spend when setting your limits in the first place.
Know the Costs of Ownership When Looking at Homes
Many first time homeowners are shocked at how different the world of ownership is from the world of renting. In addition to your monthly mortgage payment, homes require additional hundreds or thousands of dollars a year in yard maintenance, appliance upkeep, utilities, and time. Homes can cost you dearly in repair bills if gutters aren’t cleaned regularly, or if poor caulking leads to water damage. Savvy homeowners set aside yearly funds to address the unexpected costs of replacing water heaters or lawn mowers.
Know Your Real Estate Market When Looking at Homes
Having an awareness of both the local and national real estate markets can help you evaluate the best time for buying homes. You should always be aware of whether the prices of homes in your local area are rising or falling. Know how long homes in your area tend to stay on the market. Being armed with both your personal financial information and trends of the real estate market will help you make an informed decision about the right time to buy a home. Woodstock, NY experts in the field of real estate consider 30-35 as the right age to buy a home