By Rich Phillips

Sound Advice for the First Time Home Buyer

A home is probably the most money any American will ever have to spend in their lifetime on a purchase. If you and your family have to live with each paycheck as it comes in, whether or not to buy a home can be one of the toughest decisions to make. It is a scary situation for many people but when it comes down to the bare facts, there is no other choice than to buy a home. You are making an investment in your future and that can’t be done when you’re living in an apartment. If you look at the facts, paying rent, utilities, and phone and cable in an apartment may actually be more than you would pay if you owned your own home.

The first thing you need to do is hunt for a loan. Here is where you need to take some time comparing prices. Never jump at the first loan offer just because the lending company said yes to your application. Look around and try to find the best rates before you commit to a loan.

It is a good idea to have your finances in order. Keep a number in your head that you know you will not go over and stick with it. Some lenders offer loans larger than what you can actually afford so be very careful. If you know you need a smaller loan, don’t be pushed into something you know you can’t afford.

Once you have gone and applied for the loan, the lender will tell you exactly how much you qualify for. Discounting what you have as a down payment, make sure you look at homes that are within your price range so you do not get stuck trying to pay off a loan that was too big to begin with.

Tips for the First Time Home Buyer

When buying your first home, there are many things that you should learn before jumping into your first purchase and one of them is the taxes on the home. Each area or district has a different tax bracket and these taxes vary from location to location. If you are a first time home buyer, it is always much easier to have the taxes included in your mortgage. This way you do not have to worry about coming up with large payments twice a year; they can be spread out through the monthly mortgage payment leaving you more money during the month. Your payment may go up on your loan but it will be just a fraction to cover the average tax on the home.

If you think that adding the tax payment into your home mortgage is something you can’t afford, you may want to look in a different area or even look at a lower priced home to cover the cost. If you choose to go with another lender, you can do that too if you do it within a 10-day period. This will change your credit rating one time but it will allow you to find the best lender with the lowest price that you can afford. You can shop around until you are happy with a loan and then make sure you get pre-approved to help you out during the bidding process. Being pre-approved gives you the best chance at getting the home of your choice.

When your loan is finally approved, it is time to go shopping if you haven’t started already. Find yourself a realtor who is professional and willing to take the time to find you a good home. The good thing about a realtor is he doesn’t get paid until you purchase a home so make sure he knows what you are looking for so he can search and find the best homes in the area that meet your needs or preference. Sitting down and telling him what it is you want will allow him to get out there and start checking out new properties as they become available. If you have a particular neighborhood in mind, let him know.

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First time home buyer programs

: list of programs, grants, loans,

down payment assistance

, tax credits and aide for first time home buyers. Visit

to see programs in your area.


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