Can You Afford to Buy?

October 6, 2009 | Leave a Comment

Did you know there are 125 metro areas where starter homes cost $150,000 or less? According to the National Association of Realtors, starter homes are usually priced atthumbnailCAQI30RJ 30% below a local market’s median. The “median” is where half the homes cost more and half cost less. So the most promising cities for families to buy a first home would have median prices of $215,000 or below which is great news for first time home-buyers!

3 Tips for First Time Homebuyers:

  1. Buy LESS home than you can afford. Rather than what you “want” consider what you “need.”
  2. Think Ahead. Since prices are still dropping, be prepared to stay in your home at least 5 years. Forget about making a fortune on selling your home-those days are probably over, at least for now.
  3. Stash the Credit. If you don’t need the $8,000 tax credit for a down payment, use it to pay off credit cards or put it in your child’s college fund.



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