Home Buying Tips For First Timers

If you're still renting (i.e. paying someone else's mortgage), why not think about taking the plunge into home ownership? If you have an income, chances are, you can take advantage of today's low mortgage rates and enjoy your own little piece of the American dream. Navigating the process isn't as hard as you might think if you break it down into these simple steps:

1. Arrange for financing before you go to your first open house. It's a good idea to know how much you can afford to spend before you fall in love above your price range. Also, having a pre-approval in hand shows prospective buyers that you are serious about buying. Start by going to your bank to see what their home loan program can do for you. Then shop around through other mortgage lenders to see which terms are best for you.

2. Identify the ideal location for you and your future. Casting a wide net makes home shopping confusing and more complicated for all involved. If you do your homework first, you can pinpoint the suburb or neighborhood that will best suit your needs now and for the foreseeable future. Consider the quality of school districts even if you don't have children because a good education rating will go a long way when you want to sell your home down the road.

3. Don't fly solo - enlist the aid of a real estate agent. Buyers don't pay hefty fees; it's the people who sell homes who pay up to 6% of the sale price for the benefit of a realtor. A good realtor will listen to what is important to you in your first home purchase and help guide you to properties that are a good fit.

4. Don't get your hopes up too high, too soon. First-time home buying can be a heady experience and there's no doubt that you will be excited. You should know, however, that circumstances can come up from behind and turn what you thought would be your dream house into a nightmare (a.k.a. money pit). Your realtor will arrange for a home inspection, and sometimes a closer look into the home can lead to problems that should prevent you from buying the home. Go through each stage with optimism, but try not to be too disappointed if complications arise along the way.

Putting your renting days behind you is really easier than you might think. When it's done, you can proudly pay your mortgage each month and know that you are investing in something besides a landlord's pocket.