| First time home buying is a very exciting | | | | using an affordability or loan calculator on the |
| experience for everyone. You could not ignore | | | | Internet. However, it is still preferable to consult a |
| the feeling of enthusiasm and eagerness. On the | | | | financial adviser to determine the exact amount |
| other hand, you will also feel a bit worried since | | | | you can afford. |
| purchasing a house involves a huge amount of | | | | 5. Since you have an idea already of the amount |
| money. Therefore, it is necessary to put into | | | | you can afford, the moment you found a house, |
| consideration everything before you decide. | | | | you ca make an offer for it. Normally, you offer |
| Especialy if you are a first time home buyer, | | | | less than the price of the house. If you go to |
| there are a lot of things to consider. | | | | places where there is a stiff competition for the |
| Following are some essential facts you need to | | | | same properties, you have to offer a full price or |
| consider as a first-time homebuyer: | | | | even go higher than the full amount. When a seller |
| 1. When buying a house, normally you have to | | | | or homeowner accepts your offer, the bank will |
| apply for a loan and have it financed. You must | | | | have someone appraise the house. When this is |
| have a stable job since this is a long-term | | | | through, the loan proceedings will follow and a |
| obligation. You must have a job that allows you to | | | | closing date is set for signing documents. |
| survive mortgage payments until the end of the | | | | 6. Think about where you prefer to live. It is your |
| contract. Banks will screen your financial status | | | | choice to stay in your current neighborhood or |
| and the main criterion is a regular income. | | | | you want to start fresh in a different locality. |
| 2. When the bank gives approval, make sure to | | | | Whatever you choose, make a thorough research |
| bring a prequalification letter to the real estate | | | | of the demographics of that area, consider the |
| broker when you being searching for a potential | | | | distance form your work, and make a research |
| home. The letter will tell you how much loan you | | | | on good schools nearby for your kids. |
| can avail. This will also ensure the agent that you | | | | 7. Make a thorough inspection of the house you |
| have the capacity to purchase a house. This | | | | wish to acquire. You can hire a professional home |
| prequalification will help determine the market | | | | inspector to guarantee that the property is of |
| value of the house you can afford to buy based | | | | good quality. A home inspector's fee is normally at |
| on your current financial standing. | | | | $300. Although this may appear costly, but this is, |
| 3. Learn about the first-time homebuyer stimulus. | | | | necessary if you want to be assured that the |
| This bill provides credit of up to $8,000 for those | | | | home you purchase will not give you headaches |
| who qualify and purchase before Dec. 1, 2009. | | | | later on. |
| This can help make your American dream of | | | | 8. Don't forget to set aside money for closings |
| owning a home into reality. Consult a professional | | | | costs. It is typically 1 to 2 percent of the |
| tax adviser for further details on how to benefit | | | | purchase price. This goes towards the land |
| from this tax credit. | | | | transfer tax and lawyer fees. |
| 4. Make a calculation of what you can afford for | | | | Remember, real estate never sleeps. If you |
| a home. This is also based on the down payment | | | | intend to buy a hot property, you have to make |
| you have to make and the amount you are | | | | move quickly or lose it. |
| allowed to borrow. You can make an estimate by | | | | |