FIRST TIME HOME BUYERS

WHAT YOU NEED TO KNOW BEFORE YOU PURCHASE YOUR FIRST HOME

Thinking about purchasing your first home?  Not sure if you can afford it?  Concerned about finding your dream home in your price range?

Well you are not alone as there are many first time home buyers that have the same concerns that you do.  Being a first time home buyer can be a very stressful time, but being prepared and educating yourself can bring your dream of becoming a home buyer true.  Just remember, there is a house out there for you that you will be able to afford as you soon become a first time home buyer.

The first thing you must ask yourself, “ Am I ready to become a home buyer?”  You will need to know if you are financially ready to proceed with become a home buyer.  It is recommended by some experts that a first time home buyer should ask themselves a few questions:

1. Am I living within my means, avoiding any credit card debt?
2. Do I have enough money saved up for my down payment and my closing cost?
3. Is my current job steady and my income reliable?
4. Do I have any emergency funds available to me? In case of an emergency.

Being a first time home buyer can be an extremely stressful time, so take into consideration if you are truly able to withstand the stress that you are about to endure.  Make sure that you feel that you are emotionally prepared for this new endeavor, as there will be many hurdles to overcome in becoming a home buyer.

As many of the first time home buyers are use to renting, there will be an adjustment to make when you become a home buyer as you will need to budget a little bit differently.  It is a great idea to have some reserve funds that are available to you in case of any type of emergencies.  And remember, if you are purchasing a new or old home things can go wrong and items will need to be replaced as you will no longer have a landlord when you become a home buyer.

The next big step would be to make sure that you can afford to become a home buyer.  When you feel the time is right to become a home buyer you will need to determine exactly how much you can afford to spend on become a home buyer.  It is recommended that you get pre-qualified for a home buyer loan.  There are those that prefer customers and clients to be pre-qualify before they even place an offer on the table to become a home buyer.

There are a few options out there that you can utilize to become pre-qualified for a home buyer loan.  You can go to your financial institution and qualify with them, you can locate a real estate agent that you may already know or have already had some communications with, or you can go directly to a specific lender.  Some experts say that going with someone that you already have established a relationship with could be beneficial to you in becoming a home buyer as they may go that extra mile for you. 

Now remember that you total monthly mortgage when you become a home buyer will include what is known as PITI which means Principal, Interest, Taxes, and Insurance as this should not be over 30% of your gross monthly income.  You can also speak with your lender if you have any questions with regards to becoming a home buyer and the process that it takes to succeed in your new endeavor.

It is recommended and a great idea to seek out those special lenders that may have special financing or a first time mortgage home buyer option as this may be able to take into consideration any special needs that you may have. 

If you are able to locate a lender that does offer a first time home buyer option you might be able to put no money down or a small amount down for your home buyer loan.  If are required to put some money down some lenders will allow you to use money that was given to you for the sole purpose of this down payment, better known as a gift.  Also, some special programs might also allow you to pay no closing costs or you might also be able to put your closing costs into your loan.  If you have any questions about this you should contact your lender and inquire about your home buyer loan and your options.

As I’m sure you are aware of the bigger the down payment that you have in becoming a home buyer, the lower your mortgage will be and the less that you are borrowing against.

The next exciting step would be the location of your new home.  If you don’t already know where you want to live this is a great time to do some research and figure out the best location for your home buyer.  Are you looking for a two-story, ranch style home, or a town home?  Your best research would be to drive around town in the area that you would like to become a home buyer in.  You may also look on the internet where there are many websites that have pictures of the homes, that you can get a better look and get a better idea of what to expect so you can become a home buyer in your dream neighborhood.

When you have located that special house that you want to become a home buyer in, you will want to get the house inspected.  Your lender can refer you to several home inspector as the cost can vary from $200-400.  When you become a home buyer you will want to have your home inspected as there can be many hidden issues and problems.  This can become a bargaining tool for you as the home buyer and negotiate with the seller to fix the problems that were found.