Student Loan DebtHave you ever thought to yourself that you have too much student loan debt and will not be able to purchase a home? You are not the only one to think this and you might be surprised
Tips For Home Buying
Dated: November 25 2016
Tips For Home Buying
Use a realtor you trust – Everyone knows that realtors get their cut for each transaction they complete. Many people do not realize that the buyer’s agent gets paid by the selling agent. This means that buyer’s do not pay for their representation and should be sure to work with someone they trust will do the best job on their behalf. I know some of you might be thinking at this point it would be best to go directly to the selling agent to save money, but this notion would be incorrect. In actuality, they will pocket both sides while owing their sellers their full responsibilities and you will be secondary in the negotiations. I would recommend start looking for someone to represent you and let them do the legwork in getting you the home of your dreams.
Use the realtor you trust – A great realtor will provide you with an up-to-date search with all homes matching your criteria on a daily basis and is ready to show homes when you are ready. You should not have to be on multiple websites looking during all hours of the night to find the right home. This is your realtor’s job to bring the home to you which will make your life much easier.
Buying a home involves legally binding contracts – You will sign document after document and then more documents when purchasing a home. It is critical that you have someone who is negotiating on your behalf and getting you the best deal possible. Anyone who states that it is a standard contract and that anyone call fill out does not know how to use it to provide you the best deal. I always advise getting someone with experience and that truly knows the contract. We all know someone who has their license but do they know the ins and outs of the contract to make sure you are protected during one of the biggest financial decisions of your life.
Think about the future – It is fair to say that depending on the market and the terms of your mortgage you could be looking at five to seven years before you are putting equity into your home. Think about the future and if you plan of staying at your current job, getting married, having kids and other factors. Buying a home can provide you with opportunities to build equity but it could become a burden if you do not think long term.
Look beyond the surface – It is easy to go into a home and dream about all the changes you want to make. There are some fixes such as paint and wallpaper that can be fairly easy to fix. While remodeling a kitchen or bathroom can be large fixes with hefty price tags. Keep in mind what will be easy to fix and what will not be as easy of a fix.
Keep your monthly payment comfortable – You will need a pre-qualification in order to purchase a home. If you do not have one, your realtor will be able to suggest people that they trust to do a good job. It is important that you focus on coming up with a price point that is comfortable for you and this may differ from your qualification. If you pre-qualify for a home up to $250,000, it is perfectly okay to buy a home that is $180,000 if that is what you are comfortable with purchasing.
Consider your student loan debt – Changes are continuing to make lending laws more and more strict. In a nutshell, deferred student loans did not use to count against you as much as they do now. If you are a first time home buyer with high student loan debt you may have limited options. A great realtor will be able to get you in touch with a lender that can help show you the path to getting a home or you may need your realtor to direct you to alternate plans that may better suit your needs.
I became a Realtor in 2016 when I had to make a change in careers for my health. While I miss teaching everyday, I am grateful for this professions because in many ways it is an extension of teaching.....