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First Time Home Buying> Massachusetts> New Hampshire
Buying your first home can be big step especially in today's turbulent real estate market. Consider the following points if you are considering buying your first home.
Home Buying Process Chart How long do you plan to live in your first home? Spend some time thinking about your long term, intermediate and short term housing goals. In this market, if you purchase a home and lose a job, have a job transfer or decide to move after only a short time, you will probably end up digging into your own pocket to get your house sold. The value of your home may not have appreciated or even depreciated slightly so as not to have enough money out of the proceeds to cover the costs that you paid to buy the home and the costs that it would take you to sell your home. I would define short term as 1-4 years, intermediate term 4-7 years and long term 7+ years. Knowing you are only going to live in your first home for a short period, should make you think about whether it is the time to buy or not. A good Buyer's Agent can help you from square one in the home buying process. 
How long the home will meet your needs.
What features do you require in your new home to satisfy your lifestyle now or five or ten years from now? Things change and five years can be a long time, marriage kids, more kids etc.... Depending on how long you plan to stay in your home, you'll need to make sure that new house has all the features you will need. A new couple just married and no kids will find two bedrooms to be plenty for their needs. Child number one comes a long.... ok, a little cramped but will do. Then uh-oh child two comes along. These are the things to consider. A professional real estate agent can walk you through this process. Your financial health - your credit and home affordability.
Talk to a lender right away. Let your lender pull your credit and start a credit application. This is key. Many new homeowners make an assumption about what there interest rate will be based on the teaser rates they see on tv or in the newspaper. Your interest rate can vary depending on the amount of money you have to work with, your credit profile and your ability to repay the loan. No up front what you are talking about so there are no hidden surprises. Looking at houses is fun, talking about all the money you have to spend isn't. Take care of it early and save yourself money, time and aggravation. Again, a good realtor can walk you through this process. For a quick idea of what you can afford use a mortgage calculator. FNMA say that the "28/36" rule is a good guideline. Meaning 28% of your gross income goes towards housing expense, including principal, interest, taxes and insurance and 36% of your gross income includes housing and consumer debt. Many programs will let you go as high as 43-45% of your gross for housing and consumer debt. Programs vary so do your homework. Downpayment Money- where is it comong from?.
Most home buyers will need some money for a down payment and closing costs. The VA, if you are a veteran will loan a 100% of the loan amount. Most low money down programs are offered by the FHA or Community lending programs and require 3-3.5% down. Home ownership and the ongoing cost to own.
Don't forget maintenance on an ongoing basis. Whether it is in a condo fee or out of pocket. You will be an owner, nothing gets done until you pay for it to get done. If you are unsure if home buying is a good choice for you, contact a Realtor, financila planner or accountant. If you are in a higher tax bracket home ownership can make a big difference. Other Resources for Buyers
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