Buying your first home can still be the dream it was always said to be. However, if you don’t know what to look for, it can quickly become a nightmare. If you are looking to purchase a home this year, there are a few key pieces of information you need to know to succeed. The housing market is steadily changing, but a savvy buyer armed with knowledge and information can realize their dream of owning a home.
With the incoming administration of President-elect Trump comes some new tax laws that will affect home buyers this year. Trump is suggesting changes to tax laws that will increase the size of standard deductions dramatically. In addition, some members of Congress have proposed changes that could eliminate the buyer’s ability to deduct real estate taxes.
Something else to consider is that more millennials are looking to buy their first home now than in past generations. Many twenty-somethings struggle with paying off student loan debt after graduating college and can initially only afford small starter homes. Policy makers are discovering that millennials are now waiting and saving to afford a better purchase. This will impact the prices of starter homes and other properties depending on local markets.
The National Association of Realtors offers even more advice for first-time home buyers. They suggest taking the time to talk to mortgage brokers and get pre-qualified. Many put this off but this can put you a jump ahead just by asking them some questions, and getting an idea of where you are in terms of how much you can afford. They advise to even shop around for a good broker and get a better understanding of the whole process.
They also say it is important to be ready to move when you find the perfect house. Many aren’t prepared to do this and miss out on their opportunity. If you think you’ve found the home you want, you have to be ready to quickly take advantage of it. It’s important to make a good offer, and then be aware that yours is likely not the only offer on the table.
They also advise to factor into your budget maintenance and repair costs right away. You should do this even if the home is brand new. If you miss this step, you could find yourself in need of repairs down the road with no money to fix them. Repairs only become worse as time goes on so this is an important step in home buying.
The association also advises to develop your ideal neighborhood wish list. Decide which factors are important to you as far as being near schools, recreation, parks, other public facilities, etc. For some, living near a school, park or church may be a deal breaker as it will draw many other people to come near your home at any given time. These are things to take into consideration.
Buying your first home is a milestone that can bring joy and lasting happiness. If you want that happiness to continue, your best bet is to go in with the necessary knowledge and preparation in order to make your quest a success.
Are you looking to become a homeowner this year? Let’s discuss here or on Twitter @lcarterwriter.