Diana Hill
Online Trading Academy
When you have a career in real estate, and have done extensive investing in real estate for much of your children’s lives as my husband and I have, you might expect that your children are pretty real estate savvy; at least I did. I felt that by osmosis my children should know all there is to know about buying a piece of real estate, especially since our youngest son is doing very well in commercial real estate. Reality is, they still have a lot of questions. So for your benefit and theirs, here is my top ten list of things to know or think about for first time home buyers.
The Top things any first time home buyer should consider are:
-
Compare what you’re currently paying for rent to what you would pay to own a home, buy vs. rent. The keys things to factor in are:
A home is more than a mortgage payment. It is also: property taxes, homeowners insurance (this will be higher than renter’s insurance), additional utilities and routine home repairs.
You will have added tax benefits that could reduce your taxable income. -
Owning a home is often a great hedge against inflation. Rents will continue to rise but when a home is purchased with a fixed interest rate, mortgage housing costs will remain the same.
-
You should be willing to stay in the home for a minimum of five years to get the most benefit.
-
The average FICO Score that is required for a home loan as of February 2016 is around 720.
-
The optimal down payment is 20 percent [there are very good programs for 5% down but you will have an additional monthly cost of PMI (property mortgage insurance)]
-
It is important to use a real estate professional to help with negotiations, home inspections, contingencies and appraisals.
-
Make sure you have a team accountant, real estate professional, mortgage broker and often a real estate attorney to provide you advice and guidance. They are the professionals but you are the one who needs to make the final decision on what is best for your situation.
-
Start looking and narrowing down the location you are interested in but don’t make an offer until you are sure of the following things:
What you can afford as a first time home buyer (and have a pre-approved mortgage letter from the lender).
That the area fits your needs. Have a list of the things you must have, for example a back yard. -
Once a home loan has been approved do not apply for any additional credit, such as buying a car.
-
That you won’t be house poor. Buy the house according to your needs but be sure that you will still be able to enjoy your quality of life.
There are many things first time home buyers need to take into consideration. This is just a small sampling. Buying a first home, or any real estate, is a big decision. Make sure you’ve done your due diligence and surround yourself with professionals that have your best interest at heart.
Read the original article here - 10 Tips for the First Time Home Buyer
This content is intended to provide educational information only. This information should not be construed as individual or customized legal, tax, financial or investment services. As each individual's situation is unique, a qualified professional should be consulted before making legal, tax, financial and investment decisions. The educational information provided in this article does not comprise any course or a part of any course that may be used as an educational credit for any certification purpose and will not prepare any User to be accredited for any licenses in any industry and will not prepare any User to get a job. Reproduced by permission from OTAcademy.com click here for Terms of Use: https://www.otacademy.com/about/terms
Editors’ Picks
EUR/USD struggles near 1.1850, with all eyes on US CPI data
EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.
GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus
GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.
USD/JPY rebounds above 153.00 ahead of US inflation data
USD/JPY stages a comeback and regains 153.00 in the Asian session, snapping a four-day losing streak amid some repositioning ahead of the US CPI report. However, expectations that Japan's PM Sanae Takaichi could be more fiscally responsible, along with bets that the BoJ will stick to its policy normalization path and the risk-off mood, could support the safe-haven Japanese Yen, capping the pair's upside.
Editors’ Picks
EUR/USD struggles near 1.1850, with all eyes on US CPI data
EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.
GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus
GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.
Gold remains below $5,000 as US inflation report looms
Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.
US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed
The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.
A tale of two labour markets: Headline strength masks underlying weakness
Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market.
5 Forex News Events You Need To Know
In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.