| p>Before home buyers do their first home inspection, | | | | the mortgage sooner. You the have the option to |
| they have a lot to consider when buying a home. | | | | extend the home as you family grows or move to a |
| Home buyers first have to decide on their basic | | | | larger home. Remember that your first home will rarely |
| present needs, and their future [secondary] needs and | | | | be your last home, so look after your present home |
| their wants, and be able to determine their budget to | | | | buying needs first, and let the future take care of itself. |
| make better home buying choices. | | | | What needs must you as a home buyer satisfy now |
| Home buyer Tip # 1. Know your family's present | | | | within your budget? You should ensure that the home |
| primary needs. Its essential that home buyers first | | | | you are buying will satisfy your present needs and be |
| understand their present home buying needs and | | | | within your budget. Only concern yourself with your |
| ensure that they will be met. Meeting your present | | | | future home needs once your present needs are met. |
| primary needs should be the main purpose of buying a | | | | Home buyer tip # 3. Know your home buying budget. |
| home. These primary needs are separate from your | | | | Your budget to buy a home is determined by your |
| future needs and your wants. As a home buyer | | | | capacity to service a home mortgage, and this is |
| knowing your family's actual present primary needs will | | | | determined in turn by: |
| help you make the right buying decision. You need to | | | | |
| determine what is most important to you and your | | | | 1. The number and age of your dependents |
| family? Meeting future needs and secondary needs | | | | 2. Any existing credit commitments and |
| would be nice to have also. Home buyer tip # 2. Be | | | | 3. Your total income. Mortgage lenders today will not |
| prepared to sacrifice some your future needs and | | | | allow you to buy a home that is outside your budget. |
| your wants. A home buyers budget limits what they | | | | This is a big change in mortgage lending and is one of |
| can include in their wish list. It has been said that our | | | | the reasons that home prices have fallen in many |
| needs are limited, but our wants are insatiable. Our | | | | markets. |
| wants are limited by our incomes and ability to buy. | | | | Examples of home buying wants instead of needs. |
| Home buyers needs must be met by our home | | | | Many potential home buyers allow their wants to |
| purchase, and they must be met with our ability to | | | | control the home buying decision, and I have included a |
| repay the mortgage required. Buy a home by only | | | | couple of examples. |
| looking at homes within your budget. Don't over-commit | | | | Acreages: Acreages will give you space, but will |
| on the home. The family with an annual income of | | | | increase transport and commute times and rob your |
| $300,000 may have the same basic needs as a family | | | | children of other amenities. And upkeep of an acreage |
| with an annual income of $80,000, but their wants will | | | | property will make you a slave to your garden. Many |
| push their home wants to their capacity to repay a | | | | people that buy an acreage usually sell within 5 years |
| mortgage. | | | | because the work load and costs of maintenance |
| When you buy a home its important to know the | | | | becomes too much them, especially older people. |
| difference between your wants and your needs. You | | | | Unless you are passionate about spending your |
| also need to discern your present needs from your | | | | weekends gardening, think twice before buying a |
| future needs. | | | | acreage home. |
| Example of home buying present needs and future | | | | Swimming Pools: Swimming pools are wants that |
| needs. For instance, a couple with a child on the way | | | | many home buyers mistake as needs. Swimming |
| can have their home accommodation needs met with | | | | pools are fun entertainment and friend magnets, but |
| a three bedroom,or even two bedroom home. The | | | | create costs and work maintaining them and getting |
| new baby may not be put into a separate room till | | | | little usage over the year may make them a poor |
| after the first 12 months or longer. Yet many couple's | | | | investment. many people eventually fill in their pools or |
| will seek a four bedroom home because they see | | | | sell the house to get away from the maintenance. |
| themselves having more children later, and requiring a | | | | Home buyers take-away. |
| spare rooms. An affordable four bedroom home may | | | | When it comes to buying a home, as in life, we can't |
| mean a home 20 minutes further from work and | | | | have everything. Therefore we have to determine |
| shops and amenities. This will mean higher fuel and car | | | | what we can afford to pay, what we must have, and |
| costs, and more could mean 3 to 4 hours a week | | | | what we can do without. Doing this will make the |
| more spent in traffic, and that means less time with | | | | home buying decision easier, less stressful and ensure |
| your new baby and relaxing at home. And more travel | | | | living in the home is a whole lot better and more fun |
| means more chances to have an accident on the | | | | for every one of the family members. It also means |
| road or getting traffic fines. The three or two bedroom | | | | that the home that you buy will satisfy your present |
| home might cost less now, and have lower mortgage | | | | needs, both yours and your family's members. Isn't this |
| repayments and allow you to save more or pay down | | | | the most important thing to you as a home buyer? |