Things To Consider When Buying Your First Home

Things To Consider When Buying Your First Home

If you have been waiting to buy a home this could be the right time, according to some recent reports on home prices seem to be rising. This is a positive sign since the housing market was on a downward spiral since 2008 the fact that prices are climbing could mean the storm is over.

Individuals who are renting could turn those rent payments into equity in a home of their own. While the days of irresponsible lending are long gone it is possible for a person to get a very competitive loan provided they know what lenders are looking for.

Unless you have twenty percent to place as a down payment you will need to get the mortgage insured by Fannie Mae or Freddy Mac, these are programs under the Federal Housing Authority(FHA). In order to qualify for this type of insurance you need a minimum credit score of 580 however that is the bare minimum. You should try to get your score as high as possible. The benefit of a higher score is lower interest rates which makes your home more affordable.

It would be wise to first find out what is the maximum mortgage you qualify for before you even look for a home. There are many mortgage lenders out there so you can choose to either go directly to the lender yourself or work with a mortgage broker. What these organizations will do is provide you an approval in principle, this will let you know what is the largest amount that can be borrowed based on your particular situation.

Now that you know what your budget it is time to find a real estate agent who can help with the purchase. The real estate agent is going to assist you with identifying the home that best matches your specific needs. Do you want your home to be near a school, hospital or workplace? There is also the question of home many rooms and other amenities. When trying to select the right real estate agent it would be smart to target those that have experience over many years and a large number of satisfied clients. You will not have to pay the agent out of your pocket, they get their money from seller.

While viewing the properties do not feel pressured that you have to make the decision to buy right away. There are many more houses for sale in the market than there are buyers so you can take your time reviewing these opportunities. When you do make an offer to buy the house add the condition that a satisfactory inspection be conducted by a firm of your own choosing. Some houses look great but after a comprehensive inspection it turns out they are not structurally sound.

If you follow these tips you should be able to find a great home and realize your American Dream.