So you think you're ready to buy a your very first home. Let’s talk about the process.

Don't let this scare you away from buying. There are many advantages to buying as opposed to renting; after all you still need a place to live.

When you buy a home you can deduct the interest on the mortgage loan and the real estate taxes from your federal income taxes. You cannot deduct rent. On the otherhand when the sink leaks in your rental you call the landlord and it gets fixed. When you own your own home you also own the maintenance.

When you are ready to move from a home you own you can sell your home, but when you rent you just leave. So it's easier to leave the rental unit but leavung a home you sell you may recover much or more than all your expenses as a home owner. In todays market you might only recover 80% but even that is better than nothing.

I would advise renting to anyone who has an unstable job or anyone who does not expect to be in their home for at least 3 years. It typically takes 3-4 years to recover closing and other costs involved in buying and owning a home. 

It is usually after four years that the person who bought a home begins to realize the real advantages of home ownership over renting. These advantages can be quite substantial I recommend that you sit down with a professional at your lending insitution and let them show you the financial pros and cons of home ownership.

Below I have attempted to break down some of the normal costs involved in buying a home. Some lenders and some mortgage loan programs may allow you to roll some of these costs into the loan.

Sometimes a seller will agree to pick up some the buyer's closing costs. This could save you a bundle.

• First, before you do anything else you need to know how much you can afford. Talk to a lender. Your own bank is often a good place to start. Shop around for loans and compare not only interest rates but also all other costs. Sometimes a low interest rate comes at the expense of high upfront fees for which it might take many years to recover. Buying a home is a huge undertaking and should not be entered into casually.
• There are several upfront costs you should anticipate in addition to your down payment including but not limited to an appraisal $400 or more, a home inspection for roughly $300 – 700 depending on size and complexity, a CL-100 wood infestation (termite) inspection approximately $100. 
• Unless you are a Veteran obtaining a 100% mortgage there will be earnest money put down to hold the house until closing. Earnest money is simply a deposit that indicates that you are serious about buying the home and it goes toward the purchase price at closing so it is not lost. If however, you breach or default on the contract and decide not to buy after the contract is agreed to (this is called "executed"), you can expect to lose this money. This is  because the law considers seller to have been damaged because the home was not marketable while it was under contract.
• Once you understand how much you can comfortably afford you will want a good Real Estate Buyer’s Agent (like me I hope) to spend the time and effort to show you as many homes as possible so that when you make that final decision you will be confident that it is the very best home for you from all that are available.
• Once you decide on a home I will write the contact  contingent on appraisal, inspections, and financing. By doing this you will be entitled to have your earnest money returned if  one of these three fail. This is one of many ways I work to protect your interests.
• With inspections complete we then go to closing. You will need to plan several hours for this. A smooth, error free closing can be done in about an hour but, first time home buyers may need 2 or more. I recommend a closing agent I consider to be the best in the business. He is extremely knowledgeable and treats each closing with the utmost care. Not a "closing factory" he will answer all your questions and probably offer a few suggestions. I don't get paid any more or less for him for using him and you always have the right to choose any closing attorney you wish.
• Move In!!  Now you've done it!Then remember to go down to the Courthouse and ensure that you  are being taxed at the owner-occupant lower rate of 4%; If you forget your tax will be twice what it should be. It will be based on 6%.
• Enjoy your home and maintain it. If you get some extra money consider paying down or paying off your mortgage.
• Years down the road, if it starts to get too small, too big or you get a job transfer or any other life event, just call me and I will gladly help you sell it. I'll even show you how to try to sell it by owner if you wish and will explain the advantages and disadvantages of FSBO.
• I hope this has helped. Please consider me if you decide to buy your first home, I would love to help.