Buying Your First Home? The Campbell & Kellar Group Are Your Professional Guides. Make Sure You Choose Top Real Estate Experts. Feel Free to View Some of Our FREE Professional Tips & Advice Below Regarding Buying a Home. 

First Time Home Buyers:
7 Signs You Are Ready to Buy 

• According to the NAR (National Association of Realtors), rents are anticipated to increase more than 5%
• DO NOT base your decision to buy solely on the status of the Real Estate Market
• Make your decision like you would any other business decision 

1. Create and Establish a Budget
• Homeownership produces new expenses you wouldn’t have normally had. Keep in mind, or estimate, an increase or addition to utility bills, mortgage payment, property taxes, homeowners/condo fees, and your costs for your current lifestyle. Not to mention possible costs for decorating and furnishing your new home. Understand that if you don’t feel that you can keep up with the anticipated increase in your bills, than it is definitely not the time to buy.
2. A Consistent Source of Income
• Ask yourself where your cash flow is coming from and if it will be the same, or hopefully increase, in 6 months, 1 year, 3-5 years, etc. This will be a commitment that is financially long term, so having a dependable source of income is a must. Also, keep in mind future plans. For instance do you plan on going back to school, getting marriage, having kids, or buying a new car sometime in the near future? These life changing events cost money, so be sure to have an idea on your future plans and forecast whether or not your source of income will be adequate.
3. Have an Urgent Situation Fund
• Nationwide coined the phrase, “Life Comes at You Fast” and it is ever so true. With life, there is always unexpected changes and situations, so be sure to have enough liquid assets for 3-6 months of living expenses. God forbid anything comes along to interrupt your steady income, having a backup cash flow to withstand the misfortune will obviously help you, but more importantly, provide some peace of mind.
4. Control of Your Debts
• As strange as it sounds, having some debt is not a bad thing. For one, it allows you to borrow money when you may not exactly have it yourself at that time. More importantly, it establishes a credit history and your ability to pay back money that you owe in a timely manner. This is a main factor when applying for a mortgage. It is equally important, before applying for a mortgage, not to take on more debt than what you actually need, not want. A lender will look at what’s called your debt-to-income ratio as a factor of deciding how much they will lend you. Typically, a mortgage company will want the total of all your debts, including mortgage payments, credit cards, school loans, medical bills, alimony, child support, or anything that would normally appear on your credit report, to ideally remain under 45% of your gross monthly income (GMI). That being said, there are some who could help you obtain a mortgage with that number equaling up to 50-60% of your GMI, but the advice from most lenders would be that that might be stretching you beyond your means.
5. Have a Good Credit Report
• First understand, you DO NOT need to have perfect, or near perfect, credit in order to buy a home. Many lenders are still able to find you a mortgage with less than perfect and scarred credit history; so don’t let this be a deterrent from, at the very least, attempting to obtain a pre-approval. Keep in mind, a better credit report will assist you in getting lower interest rates and more flexible loan programs.
6. Able to Make a Long Term Commitment
• The local Real Estate Market reflecting yearly double digit appreciation rates are over, for now. A “back to normal” market showing more realistic rates of appreciation, 3-5% yearly, are causing potential home buyers to re-visit their goals. In order to recover the costs associated with buying a home, you will want to consider being in your next home for at least 3-5 years, or longer. If you don’t see stability in your current lifestyle, perhaps because of the potential for job relocation or some other event, than buying a home at that point might not make sense. The last thing you’d want to do would be purchasing a home and then having to move before you’ve had a chance to make back what you put in. In addition, you could get hit with costly capital gains tax if you are in your home less than 2 years.
7. Are You Prepared for an Increase in Responsibility
• Speaking from personal experience, there is a great sense of pride in buying a home; regardless it being a condo or a million dollar estate. Making an investment of such magnitude and having a place to call your “own” is a piece of the American Dream and is very rewarding. However, with this sense of pride comes an even greater sense of responsibility. Making the decision to purchase a home purely on your financial ability to do so can be a mistake. You must possess the ability to take on more responsibility, upkeep, and possible future headaches. Owning a home is an ongoing project and incurs ongoing maintenance. Unlike renting, you are the landlord. If something breaks or needs to be repaired, you need to do so or arrange to have it taken care of. Failure to do so can result in larger problems in the future. Keep in mind when making your decision; do I have the resources necessary in maintaining a home? Do I have the time and energy? Take time to think about these things and also to learn about the different mechanical, electrical, and plumbing systems that make your home work. Though it isn’t essential, it most definitely can make the home owning experience much easier and enjoyable!
 

New to the home buying process? Tell us your concerns. Ask us questions. It's our job to help! There's no obligation, and we promise to get back to you quickly... 

You might be a bit afraid or intimidated by the whole process of buying your first home. As top Owings Mills, Reisterstown and Westminster real estate experts, it's our job to guide you, from beginning to end. 

We will take the time to go through each and every step of the buying process. There are no dumb questions! 

Together, we will consider: 

- How much can you really afford? 

- How to qualify for a mortgage. 

- How much cash you should put down. 

- How to buy a home with little or nothing down. 

- What it takes to get approved for financing. What banks and other financial institutions are looking for. 

- How much your payments will be. 

- The tax advantages of buying. 

- Is renting or buying better for you? 

Tell us a bit about your situation below. We'll get right back to you. There is absolutely no charge, and we offer this to you with no strings attached.