Tips for buying your first house

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Submitted by: Robert
Article ID: 11508
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For a long time, buying a home was difficult. Not today; this is an era where the buyer has the advantages. So if you are a first time home buyer, you have a lot going for you. But before you jump in and buy a house there are some things you should do.

Find out what your monthly expenses. Review everything that you spend one and calculate what you save. If you do not have any savings, then perhaps this is not the time for you to buy a house. Without savings you will need a loan. And if you have no down payments, you will be stuck with a higher mortgage.

The next thing you want to do is find out where you want a home. With the price of gas going up every day, the last thing you want is to buy a home 40 miles away and then commute daily. You want a neighbourhood which is safe, has great schools and hopefully will increase the price of your home in a few years

Look and browse the internet. Take your time and see what you like. Then go and see the place. If it is an old home, you should always get a professional home inspector to check it out before you fork out the money.

Fix your credit. With the way things are going in the housing market, you will never get a loan if you have bad credit. Go and get copy of your credit report and see how you can improve your ratings. A low score may just be able to get you a loan but a higher score will get you the best rates.

Shop around for the best interest rates. Today, the interest rates are low and you can get excellent rates. Also remember, there is a closing cost of 3-6 % which you have to pay.

Down payment: As a first time home buyer, you need to have at least 5-10% upfront payment. However, one should understand that the more you put upfront, the lesser interest you will have to pay. If you do not have the money for a down payment, check with the Housing and Urban Development for a grant. They do offer grants of $3,000-$5000 to eligible individuals.

And lastly do not rush into buying a home no matter how great the bargain is- make sure you have a stable job first.