10 Tips For First-Time
Buyers
By Peter G. Miller
Each year more than 40 percent of all homes are
purchased by first-time buyers according to the
National Association of Realtors, a percentage
which should offer some comfort if you're about
to buy a first home. Others have done it, others
are doing it, and you can too.
But like most things, there are ways to make the process easier.
Here in capsule form are 10 baseline strategies to make that first
purchase a good experience.
1. Think credit. Poor credit will make you a bigger risk in lender
eyes -- and more risk means higher rates and steeper monthly mortgage
costs. Make a point of paying credit car bills, auto loans, rent,
and other payments on time, all the time, and in full.
2. Consider taxes. When you buy a home mortgage interest and property
taxes are generally deductible from income taxes. This means while
monthly housing costs may be larger when you own than when you rent,
what you save in taxes can make up some or all of the difference.
For details, speak with a tax professional.
3. Know the broker's role. Real estate brokers are at the center
of most property transactions. It's important for you to know what
a broker does, who is represented, and how the brokerage system
works.
4. Consider what location will work best for you. Look at your
needs, the needs of household members, and your preferences in terms
of commuting, shopping, recreation, and other factors that are important
to you.
5. Plan on getting a home inspection as part of any offer you make.
A professional inspection can help you understand the condition
of the property and the repair bills you are likely to face in the
next few years.
6. Look into the financing process as soon as possible. Get pre-approved
so that you generally know how much you can borrow, what you can
afford, and so owners will see you as a serious buyer.
7. Save. You'll need money for a down payment, closing costs, moving,
and other expenses. Put off trips and luxuries until after you're
in your new home.
8. Examine the different financial options which are open to you
-- consider FHA, VA, and state-backed loan programs which require
little down and have liberal qualification standards.
9. Look for gifts and grants. According to NAR, 22 percent of all
first time buyers receive gifts from relatives and friends. Some
companies offer grants and other incentives to employees who are
buying a first home. Community groups may also have programs and
financing in place for first-time buyers, while the federal government
has established special programs for teachers and police officers.
10. Start now, take your time, and ask as many questions as you
like. Being a first-time home buyer is challenging, but millions
of people do it each year -- and you can too.
The Realty Times
Published: August 2, 200
www.RealtyTimes.com
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