Home Mortgage Calculator - Tips for Surviving Your First Home Purchase
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Tips For The First-Time Home Buyer
Surviving your First Home Purchase - Home Mortgage Calculator Tips and "How To" AdviceSo you've crunched the numbers in your home mortgage calculator, you've looked at a few homes on the market, and you're ready to purchase your first home. This can be a hugely overwhelming process, and with rules and regulations constantly changing unless you know someone who's been through the process recently, they likely won't have first hand advice to give you. Not to worry though – we've compiled some simple tips to help you sail through the process.
Check Out a First Time Home Buyer's Seminar
You may be surprised by the amount of useful information you can get at a first time home buyer's seminar. Topics covered can include buying a home, finding financing, understanding your financing options, and even how to maintain your home and help increase your chances of getting a return on your investment.
When you're looking for a seminar to attend, focus on those held by non-profit companies. You may find that seminars held be lenders or brokers are really sales pitches, but those held by city housing departments, or even at your local library, are likely to give you unbiased information.
Be Flexible and Open to Every Option
First time home buyers are often in a position where they must make compromises. Perhaps you'd like a 5 bedroom home in an ideal neighborhood, but if a 2 bedroom in an up and coming neighborhood is more realistic, then you will need to make compromises. The most important thing is that you know what's worth compromising on and what isn't.
Shop Around and Find Out What Mortgages Are Available to You
Mortgage reform has been big news and has left many first time home buyers believing that they have few options when it comes to securing a mortgage. The reality is that this may be true for you – but it may not. Don't assume that the terms one lender offers will be the same terms you'll get elsewhere. Review all your options – including both fixed and ARM – and decide which one makes the most sense for your particular situation.
Find Out More About First Time Home Buyers Programs
It's true that there are fewer programs available for first time home buyers, and the tax incentives have largely expired, but there are still programs out there that can help. For example, FHA loans typically have lower down payment requirements and are more easily accessible to those with less than perfect credit.
Pre-Approval Makes the Process Smoother
It's always best to get pre-approval before you even start looking for a home. There's no point in falling in love with a particular property, only to discover that you can't secure financing on it, or that your payments would simply be too high. Find out before hand what your actual budget is so that from Day One you start looking at homes that are actually within your range.
Choose Your Real Estate Agent Carefully
Your real estate agent isn't just there to show you properties. They should also act as a guide throughout the entire process. For example, when you find a home you like, they should know what similar homes have sold for in the area and should be able to help you determine what your first offer will be. Choose an agent you feel comfortable with and who takes the time to really understand your needs.
Finding the right home isn't as simple as crunching the numbers in a home mortgage calculator, making an offer and then signing on the dotted line. However, if you follow these tips you can avoid some of the common pitfalls first time home buyers make.