Here’s a checklist for first-time home buyers

Looking to make a home purchase for the first time? You are in good company, as many first time homebuyers will be coming to market over the next year. It is not only a great time to enter the market, it’s also a great investment that can pay off in huge ways. If you are uncertain how to approach such a big decision, let these tips be the start of your strategic home purchase planning.

Tip 1: Saving a down payment is a great investment

Though it takes disciplined spending and could even delay your home purchase, saving a significant down payment is never a bad investment. Some home buyers will opt for loans with lower down payment offerings, but putting money down minimizes your risk and gives you the added bonus of starting off with some equity. Better yet, if you are able to save 20% of the home purchase price, you will lower your monthly mortgage payments by avoiding a monthly PMI penalty.

Tip 2: Get your priorities in order - Location Vs. Space

Before beginning the home buying process, make one of the most important decisions ahead of time, before you are swayed by specific home details. Decide for yourself which factor is more important to you: the specific location of your home or the size of the home. Many times new homebuyers will feel pressure to purchase a larger home, even if it is outside of their location

of choice. Failing to choose which preference takes precedence can cause the unwanted feeling of buyer’s remorse. Weigh your options ahead of time so you don’t move away from your true desires.

Tip 3: Inspect the Inspection

Don’t take everything that comes up during an inspection as truth. Do some investigating, and

even hire your own contractor to double check any areas of concern. If there are problems that are brought to your attention during the inspection, be sure that those areas are resolved before you go to closing. You can negotiate and ask the seller to repair items before (or even after) settlement. You can also ask for money back at closing to do the repairs yourself or even put money in an escrow account to make sure it is done properly and fairly for both parties.

Tip 4: Sweat Your Equity

If you have the skills (or know someone who is willing to lend you a hand), pouring sweat equity into your home can save you thousands and gain you thousands in sweat equity. The time and patience needed to endure living in a home while you repair it can often pay off in large chunks of cash when you decide to sell.

Tip 5: Pay attention to local schools

Even if you do not currently have children, make note of the school district your future home is a part of. Purchasing a home in a well sought after school district can have a huge impact on your property value. Be wary of purchasing in an area well known for a floundering school system as this reputation can greatly affect not only your future selling price but the time spent on the market as well.

Tip 6: Know the true cost

Take into consideration the additional costs of a home purchase before you take the plunge. Items like utilities, HOA fees and home improvement costs can be more than expected for some first time homebuyers. You must also consider any added time needed to commute to work if you purchase further away from your current employment and factor in what kind of personal and financial sacrifices you will need to make in order to purchase a home. If you find yourself wavering on how much of a financial toll the purchase

will cause, it might be wise to take more time to save or reevaluate your home buying readiness.