The prospect of buying one’s first home is thrilling and a bit daunting. Choosing to take the plunge into full-fledged home ownership is something that no one should ever take lightly. As the largest single investment that any couple or individual will ever make, it is a huge decision and responsibility, both financially and in terms of time and effort. Once you are determined that home ownership is for you, here are 5 tips to ensure that it is a sound choice.
The Basics
1. Understand The Financial Demands of a Home Purchase - As you excitedly look through page after page of real estate listings, do not be fooled by prices that you assume to be within your means. Of course everyone these days expects to pay a bit less than the actual listing price, except in some larger, low-inventory markets where bidding wars are possible. According to Fannie Mae, “Buyers should spend no more than 28% of their income on housing costs. Buyers that go over 30% risk becoming house poor.” Using tools, such as an online mortgage calculator can help you see what a home purchase will actually cost. Here’s one on our site you can use: http://www.afrmortgage.com/calculators/MortgageLoan.html
Settling on the price you would be willing and able to pay is just the tip of the home ownership iceberg. You will next need to factor in all of the other costs, which can include appraisals, home inspections, survey reports, closing costs, attorney fees, insurance, and taxes. Leave no stone unturned in this process before you put in an offer, so you will have a good idea of what you are committing to. Your mortgage and real estate professionals can help you better understand all of the costs involved in the buying and financing processes. And, don’t forget about furnishings and appliances!
Next, have a look at what it will cost to maintain the home annually. Aspects to think about are routine maintenance, lawn care, utilities, and unexpected repairs. Some repairs can add up to big bucks such as roofing, plumbing, electrical, and appliance problems . Home owners should also have a financial safety net in case they should be unable to work due to job loss, illness, or injury. Most financial experts agree that living expenses for a three to six month period is necessary when you own a home.
So, after months of house hunting, you’ve finally found the perfect place. You’re in the process of taking care of all the nitty gritty details and have big plans for making it your own. One item to include on the checklist is to find out which appliances and other components of the property have warranties and whether or not they are transferable to you.
The National Association of Realtors released the findings of their “Housing Affordability Index”, or HAI, in early January. Although the figures were compiled through the analysis of data for all the months except December, the news was good. To understand how the HAI is derived requires a quick explanation of the NAR’s methodology:
If you have ever considered whether or not having a home warranty would be beneficial, there are definitely two schools of thought. Home warranties serve as insurance for the major systems and components of your home, such as the appliances, electrical, HVAC, irrigation, and plumbing. Sometimes policies are included with the property purchase as an extra incentive for the buyer. However, if that was not the case, a home warranty can be purchased at anytime during ownership of the property. So what are the benefits and pitfalls when it comes to home warranties?
Whether a relocation is you’re your future or you’ve just waved goodbye to the moving van, relax! There is so much more to settling in to a new place than unpacking boxes, organizing, and decorating. Take 5 and avoid the moving in blues!
In 2011, the research team at Fannie Mae conducted an extensive survey to determine what shapes the decision-making process involved in buying a home. Known as the “Fannie Mae Housing Survey”, 12,014 individuals were asked a series of over 100 questions about factors that may or may not lead them down the road to home ownership. Fannie Mae’s Economic and Strategic research group was particularly interested in discovering whether or not the mortgage crisis has turned people completely off the idea of home ownership.
As a 
If you’ve decided to build a home instead of purchasing an existing property, one of the first things you’ll need to do is locate an appropriate lot. Here are a few helpful hints on finding a piece of land that is well-suited for your new home.
Ask the following questions when viewing a home, and really listen to the answers.
Investing in a fixer-upper can be an exciting opportunity. Nevertheless, it’s best to exercise caution when scouting potential properties.
Technological advances have made working from home easier and more cost effective than ever. So many professions are ideally suited for such an arrangement that many prospective home buyers put office space at the top of their house-hunting checklist. The business and technology research firm, Forrester, Inc. 
