Buying your first home is down right scary for most people. Your facing the unknown in most cases. Terms you don't know...payments your not sure of...and I wont even mention the contracts to sign. Some studies show that some people are so over come with anxiety that they wont take the first steps to even buying a home.
For most people buying a home is the largest financial purchase they will make. If it is your first time be sure to take advantage of all the program information and home buying programs you can.
Be sure to prepare yourself before buying. Here are six steps to follow before buying:
1) Before you start your house search, think carefully about what it will be like to be a homeowner. For most people, home ownership is the American dream and the advantages (tax benefits, sense of home, financial investment) far out weigh any drawbacks.
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) Understand exactly what your finances are. For most homebuyers the two most feared words are: DOWN PAYMENT. Today, there are so many diffrent types of loans available that this shouldnt be as much a worry as it was, say ten years ago. a good loan officer or mortgage broker should be able to walk you through the process and stear you clear of the programs to avoid.
4) When meeting with a good mortgage broker or banker, ask them to pre-approve you, not pre-qualify you. Pre-approval is an actual underwriting of your file (whether manually or auto-underwritten) and will let you know how much you can actually spend on a house and up to what rate you would be able to go to. This means, of course, that you will have to provide your income documentation, credit, and various other items required by the lender to actually underwrite your file. When you are ready to make an offer on a home, you'll have more bargaining power over someone who is just pre-qualified, which just means someone has looked over your info and thinks you would qualify for financing.
5) Look into down payment assistance programs. 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.
These six steps will help you on your path to owning a home. Just remember to ask LOTS of questions. Talk to friends and family who are home owners and see who they trust. Buying a home doesnt have to be scary as long as you understand what your getting into.
About the Author:
Doc Schmyz has invested in Real estate all over the nation. His website gives thousands of investors up to date real estate investing information Get more info from across the nation on Doc's real estate investing resources page.
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