Tips First Time Home Buyers Should Know

By John Dashwood

Starting off on the adventure of buying a first home is exciting, as well as thrilling for you and your partner who are ready to start a family of your own. However, there are still many things that must be known in advance that will be of great benefit later on. Some of these tips are well known, but others are not and you may not even know them.

One thing to know when you are a first time home buyer is don't wait for the great market timing, especially in places like Southern California, Miami are even New York. And while some regions may cool, don't count on it. If you find something that is right for you, then you should grab it. Even though interest rates are at historical lows at the moment, they may not last long.

You can find many free or low cost resources on the internet. In just one search engine you can find buying guides, checklists, and many online tools to help you determine interest rates, home values, and many others. Watch out for free property evaluation websites, these are usually real estate agency trying to fish for clients. Make sure there are no 'strings' attached. Through the internet you can check out and take advantage of first time buyer programs, and even get into one if you want.

Since you won't have a lot of extra time or money to waste by messing around, you should start off by first determining a realistic budget. Unfortunately, many first time buyers think they will afford their dream home the first time around, but in most cases this will not be happening.

To make thing easier it would be wise to go to a lender and get "pre-approved". What this consists of is a calculation of your income to debt ratio and your credit score which will tell you realistically what you can afford.

With this information at hand sit back and write a wish list of what you are looking for in a home. If you have a clear and detailed list of things you just can't live with out, a yard for your future kids, enough bedrooms to start your family, maybe some kind of alternative energy possibilities, then you are ready to start looking. Keep to your list, so you won't get side tracked or let your emotions rule your thoughts.

There are many programs that can help not only get into what you're looking for, but will help you with things like budgeting, paying off debt, learning what mortgage and title companies are looking for. Usually these programs offer really good incentives for completing their programs. This may be in the form of financial assistance, caps on what fees real estate agents charge, or even lower interest rates. These programs can also help their graduates if something unexpected comes up, like deferring payments or even in some rare cases, loan forgiveness.

Another bit of advice for first time home buyers is to check with local agencies, for example, Housing and Financial Association. They have programs for first time buyers but since each state and community is different you can check out what is in your area. Don't forget the internet also has good information for your use.

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