Buying a home is the dream of many people. In fact, buying your own home has often been called the American dream. Knowing that you own the home you live in, and own the front and back yards where you can BBQ and watch your children play gives a sense of financial security that few other things can match. Buying a home is a tradition in America, and something that really most people probably aspire to. In fact, at one time in our history the only people who could vote were property owners. Owning a home has always been somewhat of a sign of status, as well as a good investment and a wise practical financial move.
When you are looking at buying a home you must first determine your budget and the size of home that you have the time to maintain and can afford. Young couples who are newly married and just starting out in life often look for starter homes, which can be smaller homes than they will later want. A one or two bedroom starter home can be perfect for a young married couple and can work fine, at least until they start to out grow it. If they have children they will need more bedrooms. Also, with children come thoughts of school districts. Real estate agents say that one of the first questions most prospective home buyers ask when looking at a piece of property is “what school district is it in?” This is natural. Everyone wants the best for their children and a proper education is important to parents.
Many people when buying a home find that they qualify for a first time home owner mortgage, which is often a lower interest mortgage and they can often get into a new home with little or no down payment. This is a great deal for those who qualify for it. Other people have bumps on their credit rating and can’t qualify for these loans. Many times they will consider an older home to buy. It may be a “fixer upper” that needs some repairs. It could also be in a distressed neighborhood. Still buying an older home is a good move for many people because they are able to get a record of making timely payments and build up equity in the home. They are also often able to make improvements to the home that increase its value and allow them to resell the home later for far more money than they have invested in it. If they have done some of the work themselves to fix it up, then it is known as sweat equity.
Buying a home requires a visit to various lenders including the bank and the mortgage broker to see who can get the best deal and what kind of loan a borrower can get. This is usually a simple process though, and not to be dreaded. Owning a home is something most Americans can do with hard work, careful money handling, and doing the proper amount of home work. Anyone can eventually live the American dream.