Thursday, January 24, 2008

Avoiding Common First Time Home Buyer Mistakes

Buying a home can be a very exciting experience, but it can also be a confusing and complicated process, especially for a first-time home buyer. New home buyers are confused, anxious and concerned when it comes to finding a real estate agent, choosing the house, and getting financing. Don’t let yourself be overwhelmed, here are a few tips that can help you can make sure things go as smoothly as possible. Find the right person to guide you through the process. It is just as important to shop around for the right real estate agent and lender as it is to shop for the right home. Choosing the wrong person to work with during the home buying process can lead to hassles and headaches. Choose someone you feel comfortable with and that will put your best interests first. It is important to find someone who can match your needs and goals with the right mortgage possibilities. Check your credit report and score. Knowing what kind of mortgage you can qualify for depends on a number of different variables including your credit score. You can get a free copy of your credit report once every 12 months to check for any inaccuracies and your credit score rating. The higher your credit score, the better interest rate and loan you can get. If you do find mistakes, you can dispute those errors to have them corrected. Don’t buy a house that you cannot afford. While this may sounds obvious, it can be tempting to look at homes that may be outside your price range. Don’t purchase a home that is really more than you can afford and you need to be strong and stay within your budget. If you are not sure how much of a home you can realistically afford use this home affordability calculator. Once you learn how much of a home you can afford, stay within your budget. Keep in mind, just because you've been approved for a certain amount, doesn't mean you will actually be able to afford the monthly payments in addition to the other costs involved. Your new home should give you great pleasure, not hold you hostage. Thoroughly research the surrounding area of your potential home. Don't stop your inspection at the property line, research the surrounding area. Is it safe, well maintained and moderately quiet? How far Is it located to work, schools and shops? The internet can be a powerful tool to help you with this research, with just a few clicks of the mouse; you can find the answers you need. It is also a good idea to get more information about zoning, you don’t want to purchase a home only to find out in a few years the vacant lot across the street will be a super center or major roadway! If you do your research and educate yourself by asking a lot of questions things will go smoothly. Remember to have fun with the process as well and relax, you are not alone, about 2 million first-time buyers successfully walk the path to home ownership every year in the United States. Do your homework and you can avoid these common mistakes and make your first-time home buying experience a positive one.
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