How to Buy Your First Home in a Slow Real Estate Market

Published by julia | Filed under Buyer / Seller Tips, Market Trends, Pinellas County Homes, Real Estate

A lot of people are eager to take advantage of the housing situation right now. Let’s face it, the foreclosure crisis has created a lot of great deals out there. But many first-time home buyers don’t know exactly what to do to take advantage of those great deals. Fortunately, it”s not difficult to cash in on today’s real estate market and get the deal of your dreams. Here are the 3 steps to make it happen.

1.  First, figure out if your finances are stable enough to buy a home. You’ll need to be able to afford your monthly mortgage payment while still affording the basic necessities, like food, utilities, insurance, etc. It’s better if your house payment is no more than 30% of your monthly expenses. Also, you should only consider buying if you’re planning on staying in the area for at least a few years. That way, you’ll be able to get a better return on your house when you move.

2.  Are you financially responsible? You need to make sure you aren’t habitually late on your bills, and you definitely shouldn’t have trouble paying your bills. If you have trouble paying bills now, just think how much more difficult it will be when you get a mortgage! If you’re on financially shaky ground, take some time to learn proper budgeting skills and develop a savings account before purchasing a home. You’ll thank yourself for it later.

3.  Finally, decide how much house you truly need. While large, fancy houses are impressive and tempting, you may not need one. In fact, you may find that you don’t even have enough furniture to fill such a place, and think about how much higher the utilities are in a large home! First, decide on the house size that’s right for your family’s needs (not wants), then decide how much of a monthly housing payment you can afford and stick to that estimate. Once you’ve made those decisions, then choose a neighborhood you like and start looking for a home to match your needs and budget in that area. When you have a plan and stick to it, buying your first home can be a breeze!