Top Tips for First Time Home Buyers

Are you thinking about buying a home for the first time? Or, have you owned a home before, but not in the last three years? If so, you qualify as a first-time home buyer and have options that other repeat homeowners do not have.

Buying a home is a great investment and can bring you wonderful financial returns. However, it is important to make sure you're prepared and ready to buy a home. Pat Holkesvig and "Your Home Team" are experienced real estate professionals. They can help you buy or sell a home or other property markets throughout Central California, Stockton real estate and the surrounding communities.

What Will Owning a Home Do for Your Finances?

1. Tax breaks. The interest on your mortgage, the property taxes you pay, and possibly some of the closing costs may be tax deductible.
2. Equity. Mortgage payments may let you build home equity.
3. Savings. Building equity is a forced savings plan. When you are ready to sell, the IRS may allow you to withdraw up to $250,000 per individual or $500,000 for a married couple as an untaxed gain.
4. Predictability. Unlike rent, if you choose a mortgage with a fixed rate your payments will remain stable over the years. Your housing costs as a percentage of income may actually decrease the longer you own your home.
5. Freedom. You are the possessor of the home...so decorate the way you want!
6. Stability. Living in a neighborhood for a while gives you an opportunity to become a member of the community. Your family will establish long lasting friendships and your children will benefit from educational continuity.

10 Tips to Follow When You Decide to Buy:

1. Be realistic. Determine what you can afford and stay in that price range.
2. Do your homework. Decide specifically what home features are nonnegotiable to you.
3. Prepare your finances. Make sure you review the credit report and you have sufficient amount to pay for closing costs and down payment.
4. Get pre-qualified for signing a mortgage. Obtain a pre-qualification or preferably a pre-approval letter before starting to look for a mortgage.
5. Ask one or two people you respect for opinions. Too many opinions will possibly confuse you and drive you crazy.
6. Establish a timeline. When would it be best for you to move to your new home in Stockton? If you lease, when is your lease up? Can you sublet if you need to move out before your lease is up?
7. Think long-term. Would this be your very first home? Would that be a starting move? Will you be moving within a few years, or are you planning on staying in the home longer? Answers to these questions will dictate what type of mortgage and home will best meet your needs.
8. Why become "house poor". Don't let the amount of your mortgage payment become so large that it is a burden and prevents you from meeting your other financial goals.
9. Don't be naíve. Protect yourself. Make sure you obtain a home inspection and home warranty that covers defects for a year.
10. Obtain professional help. Work with Your Home Team to ensure your transaction is as stress free as possible!

5 First-time Buyers' Mistakes You Want to Avoid:

1. Missing out on the best mortgage deal because not enough questions are asked to understand all the options available.
2. Not ready to take a step.
3. Didn't work with a true real estate professional who will help you successfully maneuver the complex home buying process.
4. The offer that is written doesn't have the seller in mind.
5. Resale isn't considered before buying. On average, the first-time buyer only stays in a home for four years.

Are You Prepared to Kick Off?

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