| Six Things To Do Before Buying Your First Home |
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| Written by Doc Schmyz |
| Thursday, 22 July 2010 20:28 |
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Buying a home, especially if it's your first one, is often quite scary. There are so many things you don't know and terms you've never heard before. People often fear what they don't understand. In fact, studies have shown that this fear literally prevents some people from taking the first steps to buying a home.
Buying a home, especially if it's your first one, is often quite scary. There are so many things you don't know and terms you've never heard before. People often fear what they don't understand. In fact, studies have shown that this fear literally prevents some people from taking the first steps to buying a home. For most of us, buying a house is the largest purchase we will ever make. and of course the first time is by far the hardest. So make sure to take advantage of ALL the home buying information you can. Do some research and be fully informed before beginning your search for a home. Here are the six steps you should take before buying: 1) For most people, home ownership is an integral part of the American dream and the advantages (tax benefits, sense of home, financial investment) far out weigh any drawbacks.Think about what it will be like to be a homeowner. 2) Know your credit score from the start. If you have any bad credit issues, and we all do, be preparred to explain them. If your credit score is really low then you may want to use a credit repair company. 3) Know your finances. A down payment is a big barrier to homeownership. There are, however, many different loans/mortgages out there that offer low down payment options. You should work with a quality mortgage broker or banker to find out what would work best for your situation. And don't forget the government...a HUD loan is usually a great way to get into your first home also. Again, check with your broker or banker for more specifics. 4) Have your mortgage broker pre-approve you..NOT pre-qualify you. a pre-approval is actually a great out line of what you can spend on the house as well as the intrest rate you will be looking at. The best part is that you have much more leverage when actually shopping. It tells the seller you are already several steps closer to getting them a check from your bank then someone who is "just looking." 5) While meeting with your mortgage broker or banker, have them look into any down payment assistance programs that may be available. They should have an idea of what would be available to you. There are many programs out there run by counties and cities and other governmental agencies. The trick is to know about them, first, and then to see if you qualify for them. 6) Look into first-time home buyer classes. Many lenders, nonprofits, and Realtors offer home buyer education classes. They are usually 2 to 4 hours long and will walk you through the process of applying for a loan, working with a Realtor, making an offer, going to escrow (closing), and various other responsibilities associated with owning your own home. And realize that whoever is putting on the class is will also try and sell you on their services, which is fine, but you are under no obligation to use them. Follow these six steps and ask questions. Make sure you understand EVERYTHING that they explain to you...if you dont understand something ASK ASK ASK! Good luck. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Doc Schmyz has invested all over the US. He built a free website shares Real estate investinginformation for all over the US. Find real estate information by state |