Are you a first time homebuyer and looking for Temecula homes for sale? You are probably eager to get into the market. If that is the case, the following tips could help you decide whether you are ready to invest your money in buying a home.
The first thing any smart homebuyer will do is to check the selling prices and compare the prices of homes that are on sale in the area. You should make use of any piece of information you can get, from websites to visiting the local real estate agent to media advertising. This will give you a general idea of what you should expect to pay for your new home.
Can you afford it? Any hidden costs
It is important to buy what you can comfortably afford. Is it possible for one to buy a home that is beyond their means? The answer is YES. Many folks take mortgages they are unable to service comfortably and this limits the chances of ever completing paying the mortgage in piece. This could be the reason behind the spiraling home foreclosures. In that regard, you should find out what you total monthly housing costs will be including insurance and taxes. Talk to your realty agent to give you an estate of the maximum amount of money you will spend. It is not uncommon for first time homebuyers to get shocked by the amount of extra money they end up paying that they had not budgeted for. At least you should be aware that the selling price of the home is not all you will have to pay to own the home.
For instance, if you want to get an idea of the cost of insurance, pick any property in the area where you would like to live and call your insurance company to give you an estimate. They will be too glad to do that. Just remember that the extra costs can make a real difference between owning a house and not owning one. It is also advisable that you get an assurance from your real estate agent that there are no hidden costs that will come later that have not been indicated in the contract.
Another mistake that many first timers commit is that they forget to take into consideration the closing costs of purchasing a house into their home buying cost estimates. Closing costs can actually run into a few thousand dollars; therefore, it is not something that can be ignored. Closing costs include things like originations fees, settlement fees, transfer of title and homeowner’s association fees (if it exist in your area).
Look at the big picture
Before you decide to plunge into the business of buying a home, you should look at the big picture and see whether it is a worthy investment. Sometimes, buying a home might not be the best option especially if you don’t think you will be staying that area for long.