Mortgage Articles

Mortgage Rates and Calculator

First Time Home Buyers: Eight Tips To Help You Get The Best Deal

12/06/11

Mortgage Accelerator Scams! How To Avoid This Before Putting Your Home At Risk?

First Time Home

Here are eight tips for first time home buyers. They are not arranged in order of importance, as one is just as important as any other.

1. Decide where you want to live. If you have children, you will want to consider the schools in the neighborhood. Most parents, particularly of elementary school children, find that they prefer to live within close proximity of the school. You may also want to consider where your job is located, how long the commute will be and what the traffic is like.

2. Make a list of “must haves”. Things that are essential include an appropriate number of bedrooms and bathrooms. If you have kids or pets, a nice backyard may seem attractive. But a nearby park or playground can take the place of a large backyard. Remember that caring for a lawn takes time, something that you might not have a lot of.

3. Calculate an affordable monthly payment for your family’s income. Use my online calculator for this purpose. Most experts feel that a monthly mortgage payment should account for no more than 30% of a family’s monthly income.

4. Learn about your credit rating. Any lender will need to check your credit rating, before they will qualify you for a mortgage. You may want to check your credit record ahead of time to be sure that it does not contain inaccurate or outdated information. Things like that could affect your ability to qualify for a loan.

5. Compare mortgage interest rates and decide on a lender. The interest rates charged by banks and mortgage companies vary greatly. The easiest way to compare rates and fees is to use the internet.

6. Consider an FHA, HUD and other special home buying programs. Most lenders have access to these programs. If you are a teacher, a police officer or a firefighter, there are special programs designed to help you find an affordable home in a nice neighborhood. These programs are particularly helpful in areas where the cost of living and average home prices are high.

7. Beware of predatory lenders. Most people have heard about past predatory lending practices that have gotten good people into a lot of financial trouble. To protect yourself, take advantage of federal, state and local resources. Be sure the mortgage company or bank is reputable. Contact a housing counseling agency for more information.

8. Find a couple of houses that you can afford. Get the inspections and make an offer. Some negotiating may be involved. The owner might come back with a counteroffer. Working through a realtor or real estate agent might make it easier for you, because of their experience.

Hope these eight tips for first time home buyers make it easier for you to find an affordable place to live that you truly love.