2008 is a unique real estate market in Wisconsin. Wisconsin does not have the serious problem other states do, thank goodness. For first time home buyers with good credit, there are opportunities aplenty to buy real estate. Read the full article about the do’s and don’t for first time buyers here, as reported in RIS Media. Here is a summary and some additional commentary on the article:
5 DO’s
1. DO take time to know your credit score – it may get you a better mortgage rate. By learning your credit score, you can also see how you are doing in managing your finances. Free credits reports are available all over the internet.
2. DO explore mortgage preapproval before you start looking for homes. You’ll know what you can afford and not waste time looking at what you can’t. A preapproval also shows you are a serious buyer
3. DO start off with profesional help. Your Realtor can help you do number 1 and 2 above as well as make your home search easier by sending you new listings via email that match your criteria. A good Realtor keeps their eyes peeled for what their customers are looking for. You don’t have to do all the work yourself. Consider signing a Buyer Agent agreement for the best representation.
4. DO anticipate your future needs. How long do you plan to stay in the property? Will it work for you 5 years from now? People move often for lifestyle reasons so keep your changing lifestyle in mind.
5. DO set priorities on what you are looking for in a property – but separate them into the “Must-Have features” and the “Nice to Have, but not imperitive” features. It is possible that no house will have absolutely everything you need and want and you will need to decide what is most important.
6 DON’TS
1. Don’t fall in love with the first home or neighborhood you see. It is best to look at several homes to make sure of your purchase. Buying a home is a big step and you should take your search seriously. You may go back to that first house, if it is still available, but you will be making a wiser decision because you are more familiar with your wants, needs and what is available. When you ARE certain of a home, do move quickly.
2. Don’t buy beyond your means. Just because on paper, you qualify for “X” amount of a mortgage payment doesn’t mean you have to go that high. Are you comfortable with paying that amount? Borrow only what you feel comfortable taking on.
3. Don’t treat your home like a bank. Buy for your lifestyle and for long term investment. Quick profits do nto always happen and should not be the main goal of purchasing a property.
4. Don’t try to time the market. By the time most people sense a turn in the market, the tables have already turned. Buy for long term and buy at a time that seems right to you.
5. Don’t get an exotic or confusing mortgage. If it sounds too good to be true, it probably is. Use a reputable local lender and ask all the questions you want. It is important for you to be able to understand the type of loan you choose.
Happy house hunting! Let us know if we can help in anyway.