Some Tips That The First Time Home Buyer Should Know

Filed in Buying a Home on Oct.08, 2009

Starting off on the adventure of buying a first home is exciting, as well as thrilling for you and your partner who are ready to start a family of your own. However, there are still many things that must be known in advance that will be of great benefit later on. Some of these tips are well known, but others are not and you may not even know them.

One thing to know when you are a first time home buyer is don’t wait for the great market timing, especially in places like Southern California, Miami are even New York. And while some regions may cool, don’t count on it. If you find something that is right for you, then you should grab it. Even though interest rates are at historical lows at the moment, they may not last long.

You can find many free or low cost resources on the internet. In just one search engine you can find buying guides, checklists, and many online tools to help you determine interest rates, home values, and many others. Watch out for free property evaluation websites, these are usually real estate agency trying to fish for clients. Make sure there are no ‘strings’ attached. Through the internet you can check out and take advantage of first time buyer programs, and even get into one if you want.

Since you won’t have a lot of extra time or money to waste by messing around, you should start off by first determining a realistic budget. Unfortunately, many first time buyers think they will afford their dream home the first time around, but in most cases this will not be happening.

To make thing easier it would be wise to go to a lender and get “pre-approved”. What this consists of is a calculation of your income to debt ratio and your credit score which will tell you realistically what you can afford.

Once that is done, sit back and make a wish list. This can be things you absolutely need to have. This could be a yard for future children, how many bedrooms and bathrooms or even perhaps alternative energy possibilities. Remember to stick to your list so you don’t get side tracked or let emotions interfere with reality.

Fortunately, there are several programs for home buyers that not only help you get the house you want, but also help with other aspects of home buying like reducing debt or finding out what mortgage and title companies want. These programs also provide incentives for completion of their programs and this can be something like financial assistance, caps on real estate agent fees or lower mortgage interest rates. Another advantage for graduates of such programs is that assistance is often available if unexpected problems arise, like deferring payments or even loan forgiveness in rare cases.

Look on the internet for more information. It is also a good idea to check with your local agencies, like you local Housing and Finance Association for their first time buyers programs. Each state and community is different, so make sure you check carefully for programs that are available in your area.

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