Buying Your First Home

Congratulations! You have decided to purchase your first home. Luckily for you, this is an excellent time for first time homebuyers. The market is tipped in your favor, presenting the best opportunity in years for buyers on a budget. There is no doubt that this is an intimidating financial step, but proper preparation and aid can ease your mind and simplify the process.

Play by the Numbers
Before you do anything else, examine your budget to determine how much you can afford to spend. Be sure to take into account your gross monthly income, existing housing costs and other monthly expenses. Check your credit rating so you have a good idea of where you stand financially. If your score is below 700, start taking measures to raise it. Pay off existing debts such as credit card balances and student loans and be certain you are paying all your bills on time.

When your finances are in order, meet with a mortgage lender. If you are unclear about the differences between mortgages, such as adjustable rates, fixed rates, or three-year or five-year arms, be certain you ask plenty of questions. After you determine what is best for you, apply for a pre-approved home loan.

It's all in the details
During your home search, be certain to take notes about the characteristics of each property that stand out to you. Also take notice of the surrounding area, including parks, stores, restaurants and schools. Bring a digital camera with you to capture images that remind you what you liked and disliked most about each home.

Ask your Realtor to help you decide what search criteria are most important. They can also point out any defects that may slip past you, such as poor closet lighting or worn carpeting. These details add up and may become major factors in your decision-making.

Find a Realtor
As a first time homebuyer, you may have questions about everything from homeowners insurance to home warranties and the local school system. Real estate professionals can answer these questions and ease any concerns you may have. Working with a Realtor is the best way to assure that you are making an informed decision. Realtors are trained to explain each step of the buying process in its entirety. Best of all, this valuable aid costs you nothing because the seller pays any commission.