First Time Home Buyers - A Guide For First Time Home Buyers

For first time home buyers the process of buying a home can be very stressful and discouraging. Following these tips and knowing what you can expect will help make home buying less stressful.

I am a real estate agent. I am not at all a great writer. I have tried to give a short summary of some of the things first time home buyers may not be aware of. The tips and advice I am going to offer are based on my experiences working with first time home buyers and going through the process of being a first time home buyer myself.

First off, Unless you are a cash buyer, you HAVE to be employed with good credit to get a home mortgage loan. Receiving an unemployment or comp check does NOT qualify you for a home mortgage loan

I am sorry, that may sound mean but now a days that is how it is and how it should be. Why would you want to have a debt you know you can't afford? That is what happened in the first place. That is why all the foreclosures.

Check your credit score or if you know it is not good, work on the areas that will help bring your score up. Also make sure it is up to date and accurate. Sometimes it takes months for payments to show that a bill has been paid off. Try paying any accounts that are in collection. You can also check out the Statute of Limitations on Debts.

Don't even start looking unless you have money in your savings. If you don't have the money you will either go nuts trying to scrimp and find corners to cut or you will give up because you realise you won't have the money to close. Why put this kind of stress on yourself?

You will need to have some money saved for closing cost. Most of the time at acceptance of a purchase offer you will need at least a deposit of $500 to $1,000. Most people don't know this.

Get pre-qualified for a home mortgage loan. That will tell you in what price range you should be looking in. You don't want to go out looking at $80,000 homes when you can only afford a $65,000 home. They will never look as good as the $80,000 home.

Don't be afraid to talk to your lender about the different types of home mortgage loans there are. Which one will best suit you.

Like FHA loans that require a low closing cost.Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.

There is also the FHA Loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.

Most FHA and mortgage companies require a water test and if there is a septic, it needs to be up to code.

There are also state and government programs that can help. This is free money that can help with down payments and closing costs. Find out what they are in your state.

There is also HUD. Department of Housing and Urban Development.

Some of these loans can also help people with disabilities, low income and social security.

Don't have your whole paycheck tied up in your mortgage. After all, you work hard all week. I am sure you like to have the money to go out for dinner once in a while.

 A land Contract many times is where you purchase a home from a seller and he holds the mortgage until the dept is paid off. 

Many times people who seek a land Contract can't get a mortgage from a bank because of bad credit or not having enough money to put down.

What is bad about many Land Contracts is the deed is not in your name until the dept is paid off. So if the seller goes bankrupt or if you miss even a payment he can tell you to pack up and get out, or if he is dishonest  he could also sell the home out from under you.

Make a list of what you want in a home and stick with it. Don't just settle. You are going to be in that home for a long time.

How many bedrooms, bathrooms, familyroom, storage, closets, full or walkout basement. Do you need a yard, garage, off street parking. What kind of heating and electric. Are the appliances included.

How far will you have to travel to work. What is the neigborhood like. How far to shopping and churches. Is the home in a flood zone. If you have small children or if you plan on starting a family, What school district do you want to be in. Is there a pool, lake or pond you need to know about.

You can use a purchase offer for a bargaining tool. Unless you really want the house and the price is right, start at the lower end that you want to spend. Don't insult the seller with an offer that is way below the asking price or he may not come back with a counter. I have seen people lose a home because of this.

Use the purchase offer to include the appliances or a lawnmower to stay or some repairs to be done. If the seller does not want to leave the appliances or do some repairs, the seller may go lower on the purchase price.

A purchase offer does not become a binding contract until both parties have agreed to and signed it.

Real Estate Agents are professionals and a great tool for first time home buyers. Don't be afraid to ask your agent questions or discuss any concerns you may have. It is their job to answer them for you.

An agent can show you any property on the Multiple Listing Service(MLS) in the state they are licensed in. What this means is, if you see three properties you would like to see and they are listed with three different agencies, you only need to pick one realtor and the agents there can show you all three of the properties. Saving you a lot of leg work!

If you know or if someone you know has used an agent and had good results with that agent try using that one.

If the property is listed with the real estate office you are using, it is their duty to the seller to get him the best price for their home, but they have to treat you the buyer honestly and fairly too.

The agent will give you a Property Condition Disclosure. Which is something the seller fills out and provides any defects that they are aware of in the home.

You can also use a buyer's agent.

Most Real Estate Agents can provide you with names of Attorneys, Home Inspectors and Mortgage lenders in the area.

Do get a Home Inspection!

You want to know, how old is the roof and the heater. Is the electric and plumbing up to code. Is the water good. If there is a septic, is it up to code. Is there lead paint. The structure integrity. How about the insulation. Storm and screen windows. If there is a septic, have that checked.

The best advice for a First Time Home Buyer is, look at many homes, be educated. Do your research. This will help make the process of buying a home less stressful.

This is just a summary of some things I found some First Time Home Buyers were not aware of and hope it will be helpful.