First Time Home Buyer s 10 Step Guide Must Read Before Buying

1

. Know You're Ready             home. Keep in mind that when you
                              are a home owner, you are
You must be ready to buy a      completely responsible for all
home physically, financially and      aspects of the home, and you will
emotionally. Your own home is a       not have a land lord to turn to
great freedom, but also a great       fix major problems or maintain
responsibility. If you have a         the grounds.
steady income for over two years
that is reliable, have paid your      Some first time home buyers do
bills on time and have a good         not realize how much effort and
record, have few large, long term     money can go into a home
debts such as a car or boat, have     especially if they want to make
a credit score that qualifies you     upgrades, decorate according to
for a decent loan that will not       individual tastes, or simply
make you pay too much in              furnish a third room that was not
interest, have money saved up for     in an apartment. However, if you
a down payment, and have the          have been able to cover all these
ability to pay a monthly mortgage     issues and realize the
payment plus additional costs         responsibility that comes with
that come along with owning your      owning a home, then you are ready
own home.                             to buy!

These costs may include               2. Decide How Much You Can Afford
gardening, maintenance,
home-owners fees, trash, water,
and other bills associated with       Deciding how much you can afford
day to day living in a home. You      can be tricky, especially since
may say, well I am paying many of     you must consider interest and
those bills now and I'm renting,      the costs associated with a
so I should be able to afford a       mortgage. Your monthly payment

will depend on the type of            When buying a home, it is
mortgage and the interest rate.       important to live in a community
Of course, the better your            that fits your every day to day
credit, the better loan you will      lifestyle. For example, if you
be able to get.                       enjoy peace, quiet and small
                                     local stores and friendly
A financial advisor can help you      relationships, a rural city would
determine how much you can really     be best for you. However, if you
afford a month according to your      enjoy the hustle and bustle of
current income, total expenses,       walking, driving and meeting new
the amount of money you can put       and different people on a daily
down, and of course the loan          basis, the big city might be
terms you can qualify for.            right for you.
Although it is better to get a
good mortgage with a lower            Many people know exactly where
interest rate, there are options      they want to live so go with your
for every home buyer.                 instinct and find things in the
                                      community that you feel are
Be sure to contact your local         important, such as good schools,
bank or financial professional        great restaurants, libraries,
for assistance. There are also        fishing, terrain to ride horses,
many tools on-line that can           surfing, and so much more. Talk
assist you in finding how much        to people who live in the
you can afford. For example, a        community you are considering and
mortgage calculator and figure        see what they like and dislike
monthly payments, interest, and       about the area they live in.
principal payments quickly.           Above all, you should feel
                                      comfortable and happy where you
3. Locate Your Community              live which may seem obvious, but
                                      this step is one of the most

important when buying a home and      properties in the areas you can
some people don't pay enough          afford. No time will be wasted
attention to it.                      and you will have a good idea as
                                      to what type of home you want and
3. Scan the Environment for Homes     in the area that is best for you.


You have to start somewhere when      5. Get a Real Estate Agent
you begin your house search. I do
not recommend that you hire a         After you have done your own
real estate agent right away, but     preliminary work, and feel you
rather check out local listings       could use the help of an agent,
in the newspaper, take a drive in     go for it. They can assist you
different neighborhoods if close      further by giving you inside real
enough, and get a feel for the        estate and community information
different areas to live within        that can only strengthen or deter
the community. Check out the          your decision to buy a home in
style of the homes, what              that specific area.
condition they are in, what
houses are selling, and               Also, agents can intensify your
surrounding shopping centers,         search by showing properties they
stores, and services.                 know of or may be coming on the
                                      market soon. They can keep an eye
It is important to see asking         out for properties they know will
prices of the homes you are           meet your already decided
considering to make sure they are     qualifications. The more specific
within your budget. There is no       you can be when going to an
sense in looking in areas you         agent, the better help they can
know you can't afford. Instead,       be to you. If you are going to
focus on finding beautiful            buy a home, get exactly what you

are looking for, or know you can      always be inspecting the
easily change it by some upgrades     foundation, the condition of both
or individual style. Don't settle     the interior and exterior. You
if you know what you want is out      need to play detective to make
there.                                sure the home is in good
                                      condition and there are no major
To find an agent, ask for             problems with it.
referrals from trusted sources
such as friends, family, and          The agent and seller must
co-workers. Your agent should be      disclose all information to you
friendly, trust-worthy, have the      about ht property including both
right credentials, which include      the positive and negative aspects
a license and exclusive agreement     about the home. This includes any
with a broker, and of course be       plumbing problems, water damage,
willing to listen to you and what     termites, soil problems, mold,
it is you want. Don't let them        and so on. So while you are
show you homes that are not           enjoying the homes, be sure you
within your price range or not        ask about these things that may
what you are looking for. They        need repair or even replacement.
are working for you, so be sure
to stay in a dominating, but
friendly position.                    You need to also be looking as
                                      such things as the floor plan,
6. Look at Homes                      space that is adequate for both
                                     the present and the future, the
This can either be great fun, or      number of bathrooms and bedrooms,
grueling work! It depends on your     if there is an office or bonus
specifications and well, how          room, the size and quality of the
picky you are! Have fun looking       kitchen, and if the home will be
at properties, but be sure to         pleasant all year around, if

there is snow, rain or sunshine.      accepted.
Is there a yard that is big
enough, a dog run, pool, spa, or      8. Get a Mortgage
patio that will be great for a
Saturday afternoon lounge or BBQ.     You should have already tested
Make sure your basic                  the water with this when
qualifications are covered, and       determining if you were ready to
then look for the bonuses! Almost     buy a home. Remember? You should
every home has them.                  already have a good idea as to
                                      the loan you could both get and
7. Choose a Home                      afford. Once again either your
                                      financial advisor or broker can
So you found the home that meets      help with this. Now that you have
all your needs, in the community      chosen the home, know the
that best fits your lifestyle, at     purchase price, and have a
a price you feel is negotiable.       certain amount of money to put
The next step is to negotiate a       down, you can actually get the
deal. Now, I am not going to get      loan and purchase your house!
into negotiation, because the
price paid for a house depends on     There are many places to find
many factors such as market           home loans, including banks,
value, appraisals, upgrades,          lending institutions, both
local comparable properties, and      private and public, and mortgage
personal assessment. However,         companies themselves. This can
your agent can help you determine     take some searching and effort to
an offer that will make both you      find the best deal, so you may
and the seller happy. Always          want to have your agent and
remember the offer is negotiable,     broker help you with this. That
so negotiate! You can always          is what they are there for use
submit multiple offers until          them! There are so many options

you will no doubt find a              disclosure agreements very
situation that is right for you       carefully, you can sign the
individual circumstance.              papers and mortgage, promising to
                                      pay your monthly mortgage based
This is also the time to purchase     on the terms you and the lender
home owner's insurance. This will     agreed upon. You will most likely
be required at the signing of the     pay all closing cots and be
papers. Do not forget this,           provided with a record of where
because you must have                 all your money went as well as
documentation at signing that you     the deed to the property. The
have paid your home insurance         deed will be recorded in the
premium.                              State Registry of Deeds, and you
                                      are officially a home owner!
9. Offer and Loan Accepted- Sign
the Papers                            Make sure you are clear on all
                                      terms, conditions and have read
On closing day you will present       all parts of the sales agreement.
your home owner's insurance           Don't rely solely on your agent,
policy and the closing agent will     because ultimately, you are
list the money you owe the seller     responsible for the agreement. If
which my include the down payment     you nee assistance, you can
and prepaid taxes. The seller         always hire a lawyer to review
will then present you with proofs     the contract, especially if there
of inspection, warranties, and        are special terms.
any other documentation that is
pertinent to the sale of the          10. Move!
home.
                                      After everything has closed and
After carefully reviewing all the     cleared, you can move into your
documentation, and checking all       new home! You have successfully

bought your first home and will       any area of buying your home,
enjoy all the benefits of your        know that there are many
very own, private home.               resources available to you
                                      including financial advisors,
I hope you use these 10 tips as a     agents, on-line tools and books.
good guideline for purchasing         Don't do anything you do not
your first home. Always be ready      understand or are not sure about.
for unexpected events, as things      Good luck and have fun!
do not always go as we plan.

Also, if you need assistance in

About the Author:

John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/.