Taking the Real Estate Plunge

Many first time home buyers approach a home purchase like they would a pool, the big toe first. They think about buying a home, look at real estate websites, judge the market, listen attentively to friends and families advice, then start touring homes with a realtor. Sometimes though, the fear and trepidation seep in and they lose focus, put off the purchase, wait to save more for a down payment, seek a new job, or any other outside influence that puts off buying a home. They do this for seemingly good reasons, but we can tell you that taking the real estate plunge does not have to be like that cold first step into a pool. It can be the warm embrace of a Jacuzzi in the dead of winter. We’ll show you how.

Common Reasons for Avoiding a First Time Home Purchase Exposed

The down payment has to be the biggest concern of most first time homebuyers. They have no previous home to sell in order to gain a significant amount of money. And I f we look at the majority of savings accounts, most Americans live hand to mouth or fairly close to that old adage. So how can someone scrape the money together for a down payment?

Down Payment Assistant Programs

Many states have down payment assistance programs in place to help individuals buy their first home. Now if you already owned a home in the past, then these programs will not work. But if this is your first foray into the real estate market, then these programs can cut the cost of moving into a home by quite a bit. For instance, in Illinois a program called ASSIST gives a grant of 4.5% of the home value to the buyer in order to pay for closing costs or to use as a down payment. If you need more information on the programs available in your area, contact a Neighborhood Development Specialist, County Clerk, or other officer of the city in which you live for more guidance. A site for first time home buyers lists each state with their respective programs for first time home buyers.

For Those on Their Second or More Home Purchase

The old pros out there can tell you that the second home purchase can be just as stressful, if not more, than the first one. Having proceeds from the sale of a first home can be a great advantage in the market, as well as negotiating an interest rate for the mortgage. A good strategy is to always pay more on the existing mortgage, especially in the first few years, as this extra money goes directly to the principal. In the first few years of a mortgage, the principal is barely touched with regular payments. Therefore an extra hundred dollars can net proceeds of near $6,000 or more when the home sells, assuming the home does not depreciate in value.

Making Your Home Someone Else's Dream Home

Maybe the wife thought the fish wallpaper in the bathroom was cute when you were newlyweds, but it's safe to say the little carp won't sell the home. What can sell a home are new furnishings in the bathroom, replacing worn tile, painting, and laying ceramic tile. The cosmetic repairs done to a home in the range of two to five thousand can net two to three times as much in the sell price, depending on the real estate market. A savvy homeowner will slowly and gradually upgrade the looks of a home, especially if the expected amount of time before putting it back on the market is within five years of the original purchase date. This can greatly enhance the amount of money a person has for their next home purchase.

Your Next Home Purchase

If you have already owned a home, then you have a clear idea of what you want and do not want in a home. A first time homeowner may want to take time to explore their wants, needs, and the condition of a prospective home. A good checklist can aid with a home purchase.