First Time Home Buyers

Home ownership is part of the American Dream: security, privacy and comfort; the place where life memories are created. It is a big step.

Consider these important next steps:
Before you do anything else, shop for a lender and obtain a home loan pre-approval ⁽¹⁾. Not just pre-qualified; pre-approved. See Financing Contingency for a breif discussion. Be sure to consider other financial factors such as the relationship between the maximum mortgage, down payment requirements, monthly payments and cash flow. Don't forget insurance, taxes and HOA or Condo fees. If you don't feel comfortable with how it adds up, adjust accordingly.

In assessing your own needs, consider these four imporatnt factors:

Price range you feel comfortable with,
Size of home to accommodate your family,
Commute restrictions,
Desired neighborhoods and school districts, and
New vs. resale

Don't be tempted to consider properties outside your criteria or comfort level. You will have many second thoughts and won't be happy with the result. And, you know that you can get more home for the money, and perhaps newer, further out in the suburbs.

Next, many first time buyers consider town homes and condos. There are advantages to each. Most importantly,

Town homes: you own the structure and land beneath it. Association fees are low compared to condos but, you are responsible for all maintenance.
Condominiums: You own an interest in the property. Association fees are considerably higher because the association is responsible for exterior maintenance.

Finally, remember the financial benefits of home ownership. The interest portion of your payment and property taxes are still tax deductible and reduce your total cost of ownership ⁽²⁾. Renters don't receive these benefits. Your landlord does.

There are other considerations. We believe these are the most important.

(1) Warning: There are many sources for financing. Web loan providers do not have a good track record of delivering at closing. Avoid this frustration by seeking help from local, reputable financial institutions or brokers that understand your personal situation and can design a program that fits you. We can put you in contact with lenders and brokers that perform to our high standards.

(2) Tax advice: We are not tax advisors and recommend that you consult the IRS or a tax advisor to learn more about the tax advantages of home ownership.