TEN TIPS FOR FIRST TIME BUYERS

Every year thousands of homes are purchased by first time homebuyers. While it can look to be a daunting task, owning your own home is very rewarding. Listed below are ten tips to help make the process less intimidating.

1. Your credit
Poor credit will make you a much larger risk in lender eyes and a larger risk means higher interest rates and higher monthly mortgage costs. Make a point of paying your credit card payments, auto loans, rent, and other payments on time.

2. Taxes and Insurance
Keep in mind that in addition to your mortgage payment you will have to pay taxes and insurance. Sometimes this is not included in your mortgage payment and can be quite a shocker when you see how much it increases your total monthly payment.

3. The real estate agent
Real estate agents are at the center of most property transactions. It's important for you to know what an agent does and how the system works.

4. Consider the location
It is important to consider the needs of you and your family members. Think of what your preferences are in terms of commuting, shopping, recreation, and other factors that are important to you.

5. Plan on getting a home inspection
A professional inspection can help you understand the condition of the property and any potential hidden defects it may have.

6. Talk to a Lender
Get pre-approved by a lender so that you know how much you can borrow and what you can afford. There is a difference between pre-qualification and pre-approval. Ask your agent or lender about the difference.

7. Save Money
You'll need money for a down payment, closing costs, moving, and other expenses. Do what you can to reduce expenses and save money.

8. What type of loan is best
Consider FHA, VA, as well as conventional loans. Work with your lender to determine which loan is best for you.

9. Keep Score Of The Houses You Tour
After viewing each home, write down the positive and negative aspects. You may also want to write your overall impressions of the home. You should immediately eliminate those homes which do not measure up to your satisfaction.

10. The time is now!
Start the search process now. Talk with an agent and start looking at homes. Make a point to have your agent e-mail you new listings daily. Now is a great time to purchase a home!