May 13, 2013

Guest Post: Top Tips for 1st Time Home Buyers


Spring has finally arrived, and the real estate market is showing strong signs of improvement! I thought I’d talk about things that I would tell a buyer during our first meeting – it’s a random collection of thoughts that I’ll share over the next few posts, but hopefully they’ll be helpful to you!

First off, in case you haven’t yet made up your mind about whether or not to buy, you should know that, in Southern NH right now, monthly rent is usually higher than the monthly mortgage payment for the same house! Don’t miss out on the opportunity to buy a home now before prices continue to rise significantly, and rates begin to move up as well.

Speaking of rent and mortgage payments, don’t limit yourself in thinking that your new mortgage payment has to be less than or equal to your current rent. Wow! That’s an interesting statement – let me explain why:

  • When you buy a home, you’re eligible to use the mortgage interest deduction on your tax return next year. That should reduce your total taxes due. How does that help? A tax professional has to help you figure this out, but what can happen is that your tax withholding amount on each paycheck can be reduced, giving you more money each month to put towards your mortgage payment!
  • Take a good hard look at your current budget, and honestly list out where your paycheck is currently spent – this can actually be a shocking exercise!!! I’ve hadbuyers that I’ve worked with who realized that they couldn’t account for a sizeable portion of their take home pay, sometimes as much as $500 a month. Make a decision about what’s more important to you – buying a home which is an investment in your future, or going out for pizza twice a week. Sometimes all it takes is to rearrange your spending priorities.
  • Work with trusted advisors. The best source of information on what your payment will be is your loan officer – they can and will make close estimates that include your homeowner’s insurance and the taxes. As for home values, the best source there is your Realtor. Yup, that’s what we do – we help you evaluate the homes available and prepare a fair offer. But more on that in future posts – in the meantime, happy house hunting!

Cyndi Gadberry,Relator CDPE



Contact Us
Visit a Branch