Tips for First-Time Homebuyers

The world of homeownership can be both exciting and scary for first-time homebuyers. There are so many things to learn and things to know. In the midst of the search and information received, one can get overwhelmed and boggled down. Here are some tips to keep in mind during this time:

1. Purchase What You Can Afford. During the search, one may come across his/her "dream home". However, if this "dream home" is beyond the means of what you can afford, this home maybe your 2^nd home one day. By staying within your means, you can live both comfortably and stress free.

2. Find a Reliable Realtor. Having a realtor you can trust and depend on is a plus. The search for your home will already include some stress; the worse thing to have on your side would be a realtor who's not willing to listen to your wants and concerns regarding your future place.

3. Financing. Keep track of the interest rates and type of loan you're trying to acquire for your home. Fixed rates are a plus; avoid adjustable rates and varying loans that aren't consistent. You can also check out www.bankrate.com to view current interest rates as they change daily.

4. Have a Home Inspection Completed. Once you find the home you wish to purchase and have a contract on the home, have an inspection done. What may look good on the outside can definitely have necessary repairs needed on the inside. Do not let your emotions rule out that an inspection will not be needed!

5. Find Out About First-Time Homebuyers Programs. Many counties, cities, and states offer down-payment assistance programs for first-time homebuyers. These programs and the amounts you receive towards your down-payment assistance are based upon your family size, income, and other criteria. In addition, in order to qualify for the assistance, future homeowners must attend a class(es) regarding homeownership and what it entails. This class is a tremendous help to those beginning the path to owning a home.

6. Keep Your Goal in Mind. The road to homeownership can be very stressful and overwhelming. It's good to keep your goal in mind: homeownership! It's easy to get off-track with everything that's coming at you: the bank, the new terms, the search, and more. The goal in the end will be getting those keys to your new place!

7. Keep the Benefits in Mind. Currently, there are many incentives available to first-time homebuyers. From the stimulus tax credit to the credits you receive towards income taxes. Utilize all opportunities available to you. Also, what you're paying in mortgage is for your OWN place, not to put more money into the landlord or management company's hands!

8. Ask Questions. If there are things you do not understand and guidance you may need, ask questions. There are numerous resources available to you: from your realtor, to your lender, to the library, family, friends, and the Internet. Leave no stone unturned!

9. Consider Outside Costs. Although homeownership is wonderful, keep outside costs in mind. When renting, the repairs are covered by your landlord or leasing office. Once you own a home, repairs and upkeep are your responsibility. Include the costs of possible repairs in your budget.

10. Your Neighborhood. Know the area you're purchasing in. Most families are looking at the safety of the area, the schools in the district, and the possible growth potential of the neighborhood. You want to find the exact fix for you and your family.

Homeownership is a wonderful investment. These tips are designed to provide some help during the process. Once you receive the keys to your new home, the feeling is unbelievable!