Is Your First Home going to be Fixer-Upper or Suburban Dream Home?

Your first house should be an exciting time filled with dreams and expectations. When to plan the first big purchase of your life can be stressful. Use this article to help you read your own heart. This is a very big decision, and you want to make the right one. If you are considering buying your first house, but you're unsure whether to buy a cheap/fixer upper or wait and buy a house requiring little to no work later, then by answering the question of where you want to live and how much home mortgage you qualify for and are willing to pay per month, will help answer your question.

I recommend that you use any home mortgage calculator to calculate how much you can afford. First, do you have $3,500+ for closing costs and the initial move in expenses? Next, you should list the criteria that you can't live without. Things like central A/C, may be on your list. You should determine the space or minimum square footage and the number of bedrooms and bathrooms that you need. If the house or condo isn't new, you'll have to consider if repairs like roof work or new floors are necessary. Don't forget about paint and household appliances like washers and driers.

Sometimes you can write appliances into the contract. Othertimes you won't have this option (especially if you're buying a foreclosure which likely doesn't include many appliances). If you want ready to move in with no repairs needed, then you should wait. Bottomline is that you should know what you can and most importantly are willing to do or have someone paid to do. Sometimes your house may become your favorite hobby. Othertimes you can become a "slave" to your house.

Next, visit a real estate website and search for homes in the area that are within your price range or lower. I recommend that you don't even look at homes above your price range. Problem is, you may really like one of these homes, but in order to afford it, you may get in over your head. You need to be realistic. It's your first home and your first home mortgage. There will be other opportunities to move up.

When looking on the web, don't forget that the pictures will likely always look good. Who would expect to sell their house with bad pictures? If none of the photos look good in that area, try some alternatives, like looking slightly outside the area or you might consider using a realtor. You can always take a drive on a Sunday afternoon. Once you have seen some houses on paper, take a drive and see these houses in person. Consider the neighborhood that the house is in. Is it a dangerous neighborhood, what is the traffic in and around the house. Also is the home quiet and old, but still with character? Since you have made the list, you can get a sense of whether or not the houses begin to fit your needs. Obviously you'll want to pass on the homes with problems. Once you find something promising and your pulse quickened at the sight of that Victorian that just needs some TLC, or the ranch with nasty carpet but vaulted ceilings, then it's likely that your heart is leading you to your home.

The next step is finding a home mortgage lender, not to get your loan yet, but to get pre-approved. You can choose a bank, credit union, home mortgage broker, etc. but, you need a certificate that says you are "Pre-Approved" for a home mortgage for an amount that covers the price of the home you're interested in. This, pre-approval can lock in your home mortgage interest rate and gives you a real dollar amount to shop for and the base amount of your home mortgage payment. Sometimes you may be surprised at how much home mortgage you qualify for. Once you've got this pre-approval, it's time to see the inside of a few houses. The first ten or so may leave you dazed. Some people need to see 20+ homes before they know what their looking for.

So where do you start? If you want to look at 10 - 20 homes? I recommend that you call a real estate agent. It won't cost you anything to use a realtor. That's because the seller pays the realtor's commissions. Once you meet with a realtor and tell them what you're looking for, your agent will help you find the right house. Your home mortgage officer will take care of the home mortgage loan. Your title company will coordinate the paperwork for your home mortgage and sale. In a few short months, you could be a homeowner with your very first home mortgage.

Buying a home is the purchase with the largest impact on your life. After all, you will spend more time in it than in your car. So approach it with care and consideration. But also with hope. All houses need a little work to make them yours. But once they are, it is wonderful.