7 Tips for First-Time Home Buyers

Posted on by Lisa Barton to Real Estate News

The housing market is very different than it was before the foreclosure crisis. The New York Times provided some guidance from economists and financial planners when contemplating a home purchase. Here are the highlights:

  • Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
  • Don’t become overconfident about income growth. It is important to act sensibly when borrowing.
  • Anyone contemplating adding children to the family should calculate whether they could live on one income. Having both halves of a couple work may turn out to be impractical.
  • Include a maintenance budget. Even new homes need upkeep and repairs.
  • Buyers who can’t afford their dream home now should opt for a starter home where they can save money each month for what they really want.
  • Consider a property that can be expanded and improved down the road when money is available.
  • Make sure you're confident with the loan, no matter the size of the mortgage.

Source: The New York Times, Ron Lieber.

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