First-time real estate buyers in the Bennington, Vermont area have an advantage in todayâ€™s market – they donâ€™t have to worry about selling their homes before buying another. And homeowners are thrilled to sell to first-time buyers – they can move on to their new home and continue to stimulate the market.
If you are a potential buyer, you still need to consider a few golden guidelines:
- Location, location, location. Although recent studies have predicted a loss of equity by 2012 in metropolitan areas, government moves to reduce loans have changed those figures – and in fact, donâ€™t hold true in smaller, less volatile areas such as Bennington, Vermont.
- The old school rule of spending no more than 28% of your pretax income on your home is back – that includes mortgage, taxes and insurance.
- Work on your credit score – you will need 720 or more to qualify for the best mortgage rates.
- Be bold when itâ€™s cold. Prices generally are more negotiable in winter, and a $7500 federal tax credit is available for first-time home buyers until June 30, 2009.
- Prepare to stay in your new home for a decade. If prices drop another 10 to 15%, your investment pocketbook wonâ€™t be challenged if you are in it for the long term. The National Association of Realtors states that typical first-time buyers plan to stay in their home for at least 10 years.
- Recline through a decline. The bottom line is that real estate is still a solid long term investment, so equity and pricing valleys will eventually even out.