Some Tips That The First Time Home Buyer Should Know
It is an exciting time when you and your spouse decide it is time to purchase your first home and start a family for most. Before you start your search there are many things to know and understand before you start, some which you may already know.
One thing you shouldn’t do is wait and hold out for the best possible market s and especially in locations like Miami, New York or southern California. Even if it is possible for some regions to cool off, the market is not something you will be able to determine with certainty and if you do see a home that you can afford that is good for you, then by all means go and buy it. Even with interest rates being at a historical low, that will not necessarily last for a long time to come.
On the internet you can find numerous tools and resources to help in your first home purchase, usually for free or very low cost. You can find checklists, buying guides, tools to help in finding interest rates, home values and much other useful information all from one search engine. Be cautious if you see certain “free property evaluation” websites since they are most likely real estate agency’s looking for clients. Better bet is one with “no strings attached” sites.
Unfortunately many first time buyers believe they are going to get their “dream home” right off but that is not usually the case. You need to make a realistic budget, especially if you do not have a lot of time or money.
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.
Always check the internet for more information, as well as local agencies such as the Housing and Finance Association which has programs aimed at helping first time home buyers. Each community and state differs from each other too and so you have to look through your area in order to find all the programs available there.