subject: Tips For First Time Home Buyers [print this page] When buying a first home, young couples are effectively making decisions which will impact their lives for many years to come. It is important to consider each decision carefully. Determining a budget, examining the house and neighborhood, and finding the support of a reputable mortgage lender can help protect future homeowners when making these decisions.
Most states and lending institutions have rules that prevent couples from committing more than one third of their income to debt. If a couple already has credit card payments, car payments or other loans, those are subtracted from the amount one can set aside for house payments. Therefore, the amount a couple can spend on house payments is one third of their net income minus existing payments. Any realtor can translate this payment amount into the maximum purchase price for a buyer based on either twenty or thirty year mortgages.
It is not always wise to buy the most expensive house possible. It is important for a first home buyer to remember there will still be emergencies, utility bills and home improvements after buying the house. The maximum purchase price is logically the absolute most one can afford, not a suggestion that one should endeavor to spend that much.
Selecting a new home can be very exciting. It is very hard for first time home buyers to be objective, much less critical. When encountering a house which has a great deal of emotional appeal, one still needs to make structural checks to make sure the home is sound. First time home buyers are often swayed by cosmetic appeal. Remember that furniture and atmosphere will most likely be leaving with the seller; the most important item to look at is the actual structure. It is a good idea to bring someone who has experience in construction to check the house before making an offer. It is important to look under the house and in the attic for potential problems.
Enquiring about the neighborhood is important as well. Research both nearby and neighboring communities as well. Ride by the property at different times during the day and night to observe any sort of suspicious activities, playing children, unusual noises or anything else the family might find unappealing.
First time buyers need to search for a good mortgage company. Being critical is vital in this decision. Check the foreclosure rates. A low foreclosure rate shows the company is not exploitive or unreasonable. Second look for a mortgage lender with the lowest interest rate. Other factors to consider are the length of time the lender has been in business, the quality of service they offer and their overall reputation. First time home buyers should ask around, run extensive web searches and research all mortgage companies to the fullest extent possible before signing a mortgage agreement.
