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.
If you want to find out just how much house you can afford, then you should go to a mortgage lender and get a pre-approval. This is when the lender will calculate what your ratio is of income to debt and then take your credit rating into consideration, as well as how long you have been at your job. This will give them an idea of how much you can really 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.
Another bit of advice for first time home buyers is to check with local agencies, for example, Housing and Financial Association. They have programs for first time buyers but since each state and community is different you can check out what is in your area. Don’t forget the internet also has good information for your use.