Affordability.

In general, experts recommend that your house payment (which will include your mortgage, maintenance, and taxes) should not exceed 28% of your gross monthly income. So, for example, if your monthly income, before taxes, is $6000, multiply that by 0.28 and you’ll see that you shouldn’t pay more than $1680.00 a month on your mortgage. *To play around with this, punch your info into www.realtor.com home affordability calculator to get a ballpark of the type of loan you can manage.

Choose Wisely.

Finding a realtor is not hard, but finding one that is best suited for you and your purchase can be a challenge. Choose wisely. Buying a home requires patience, first and foremost. It also requires the transfer of a deed, a title search, home inspections, a lot of paperwork and a whole lot of money so you will want to have a trusted real estate agent by your side to explain the ins and outs of the process. This is where I come in.

Expectations.

It’s your first home—I understand if you’ve dreamed about your ideal house for years and don’t want to settle for anything less. I’ve been there! But also, you should understand that real estate is about compromise. As a general rule, most buyers prioritize three main things: price, size, and location. Realistically, though, you can expect to achieve only two of those three things. For example: you may get a great deal on a huge house, but it might not be in the best neighborhood. Such trade-offs are par for the course. Finding a home is a lot like dating: “Perfect” can be the enemy of “great” or “good”. So find something you can live with, grow into, and renovate to your taste.

Do your homework.

Before you dive into the actual act of house hunting, it is important that you already have a pre-approval letter from your lender. This is a document stating that they are tentatively willing to lend money to you, up to a certain loan amount. In a hot real estate market, like Nashville, this gives you a leg up when you make an offer on your dream-home.

Also, know your tax credit options: There are a number of tax breaks that new homeowners may not be aware of. The biggie: Mortgage interest deduction is a boon for brand new mortgages, which are typically interest heavy. If you purchase discount points for your mortgage, essentially prepaying your interest, these points are considered deductible. Check with your realtor, your lender, and the local government to see if this credit applies to you.