Get a firsthand look at first-time home buying
AFTER YEARS of rent- ing and saving, my husband and I just purchased our first home. Despite the uncertain economy, we were ready to start building some kind of equity. A few observations and lessons learned from our first-time home buying experience may help others.
To be sure, banks are more cautious lending money today than they were just a few years ago. However, I was still surprised when we prequalified for a loan that was far above anything I would think of borrowing considering our income. That just goes to show you the importance of having a good handle on your finances and knowing exactly how much you can afford. If you rely on the bank or mortgage company to make this decision for you, you might face heartache down the road. More experts are recommending that families consider buying based on one income rather than two. Yes, this means a smaller, older, or more modest home, but the peace of mind knowing that you'll be able to continue making payments even if someone loses a job may be worth it. For one-income households, experts recommend you plan to spend only 30 to 35 percent of your income on housing. Think of the extra money you'll be able to put toward savings or other expenses instead of the almighty mortgage.
Once we determined our price range, we began searching where most new homebuyers begin, the Internet. We soon discovered the pros and cons of sifting through online listings. On the plus side, it allowed us to quickly rule out a number of properties and create a list of "must-sees." However, we were discouraged to discover that many listings were not updated or taken down once they were under contract or sold. This is just one of many reasons why you need a great real estate agent working on your behalf. A side note to those who may be trying to sell their homes: The importance of uploading pictures with your listing can't be overstated. And I'm not talking about pictures of room corners or your boat in the driveway. When you're sifting through hundreds of listings, quality and quantity of photos make the difference.
http://www.fredericksburg.com/News/FLS/2011/042011/04222011/621573