Tips For Buying Your First Home
For a first time home buyer, the process can grow to be quite
overwhelming, giving you the feeling that the financial decisions
are quickly spinning out of control. When it comes to real estate,
most people don’t have a lot of experience or know a lot about it.
In all actuality, buying a home is actually a simple process. All
you need to do is understand the basics, which will go a long way in
helping you buy your very first home.
The first thing you should know is to stay away from pre payment
penalties at all costs. What this means, is that if you buy the home
then soon after want to sell it before the balance of your mortgage
is due, you’ll have to pay a penalty. You can find a variety of
great loans that don’t include these types of penalties. If you find
a loan that does include pre payment penalties, you should
immediately turn it down and look for another loan.
You should also be look for good ARM’s. If you have a good ARM, then
your interest rate and monthly payment will adjust at the exact same
time. This will make sure that your interest doesn’t affect your
monthly payment. If your interest rate does affect your payment,
then you will notice the unpaid interest reflecting the overall
amount of your loan balance.
In addition, you'll want to get pre approved for your house as well.
This lets the seller know that you are sincere about buying, and
will normally work in your favor to give an edge - which is
especially handy if there are several others interested in
purchasing the home. Getting pre approved will also save you a lot
of time as well. If you can’t get approved for a loan, you shouldn’t
waste your time inspecting it, trying to get a good interest rate,
or negotiating with the seller for your ideal price.
Before you purchase a home, you should always know how much you can
afford. Before you attempt to purchase a home, you should always go
over your budget and figure out how much money you can spend on a
mortgage payment. If you manage your money smart and know your
finances, this shouldn’t take you hardly any time at all. On the
other hand, if you don’t know your finances, this will take you a
long time indeed.
If you’ve already purchased your first home, you should always steer
clear of any type of home equity loan. These loans can be very
appealing when you get in an emergency and need cash, although most
home equity loans add up to more than the value of your home. You
should never, under any circumstances take a home equity loan, as
there are many other ways that you can clear up your personal
problems without having to jeopardize your home.
Keep in mind that the above are just a few key tips and that there
are many other things you’ll need to know when you're facing
purchasing your very first house. You’ll need to be familiar with
private mortgage insurance, special loan programs, fixed rate and
adjustable rate mortgage, and several other things. Buying a home is
an easy process, once you know a bit about it. If you familiarize
yourself with buying a home and learn all that you can about what is
involved, you’ll find the home buying process to be easier than you
ever thought possible.
ABOUT THE AUTHOR
Bob Schwartz, is a Certified Residential
Specialist, CA licensed real estate broker with
www.Brokerforyou.com. Bob
has over 27 years of residential real estate experience, authored a
number of published articles and served as an expert witness for
San Diego lawyers. You can contact
Bob via e-mail at bob@brokerforyou.com or visit his highly popular
San Diego real estate website at:
http://www.brokerforyou.com
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