Posted: 03 Jun 2012 , HomeFinders Opening doors Blog
Whether you are preparing to be a first-time homeowner or you’ve recently purchased your dream house, we have some tried and true tips from industry experts, Dottie Herman, President and CEO of Prudential Douglas Elliman and Eric Tyson, best selling author of “Home Buying for Dummies” and “Real Estate Investing for Dummies.” If you have determined that now is your time to buy, read on:
Professional resources – Enlist a local real estate agent who understands the market. Interview several agents to determine who will be the best fit for you. Also consider hiring a financial planner to help you organize your finances.
Intuition – Buying a home may be the largest purchase you ever make. It’s a purchase that should be made doubt-free; if you are questioning the purchase, you may need to reevaluate.
Saving money – Make sure that you are still able to save after you purchase your home. Tyson says that while it will vary for each individual, saving six months of living expenses is a great way to stay ahead of the game. The more volatile the market, the more money an individual needs to save.
Automatic mortgage payments – Congrats, you decided to purchase! Auto payments are a great way to ensure that your monthly payments are made on time. Your credit score will be severely affected if you miss your monthly payment.
Home receipts – Common sense dictates that homeowners should always keep their documents in a safe place. A long-term homeowner or real estate investor will most likely need these documents at several points in their life.
Refinancing – According to Tyson, due to the drop in interest rates, many homebuyers want to know if refinancing is a good option. He states, “It’s a situation complicated by all the financing options available. Historically, the motivation to re-finance comes from the ability to save money. Re-financing always comes with a cost, so you need to determine how long it will take you to re-coop the financing cost to determine if it is worthwhile.”
For more tips checkout the full story from Herman’s Saturday morning radio show, “Eye on Real Estate.”