What To Know When Buying Your First Home

Buying your first home can still be a charming and fulfilling experience. Many people find their first experience looking for an affordable home a bit discouraging. The main thing people underestimate is the long term financial commitment involved in buying a home. Unless you can afford to buy a home straight up with cash, you will be looking at mortgage plans.

These payment plans often last two or three decades which means the home owner will be grounded in the same spot for the life of the loan. For some people who have been transient due to their job this idea is unfeasible, or unrealistic. However, if buying a home is the right decision for you, all you need to figure out is the payment plan. Many homes are very adaptable and transformable, so consider your first home a long term project, and inspire yourself with its potential.

• If you can afford a fixed rate mortgage loan you will be rewarded with a very secure loan that will rapidly help improve your credit score making it easier to take out loans for other financial endeavors.
• Adjustable rate mortgage loans offer low initial down payments, and for the first few years of the loan the monthly payments will be lower than a fixed rate. Eventually the interest rates will go up making payments more expensive than a fixed rate loan.
• Get in touch with a real estate agent local to the area where you intend to move. Visit the area for a few days and ask yourself: Is it close to work? Is it safe? Are the good schools and forms of entertainment? Can I afford this?

Getting Professional Help

What’s the first step in buying a home? In your case it’s probably advisable to visit a real estate agency. You can also do some online research to see what’s available. Remember, most everything is going to seem really expensive to begin with. However, this is an “asking price”. In the same way you might haggle over a car, a house is a negotiable product. Polish up your people skills and you could potentially be on your way to a great deal. But you need to decide how you are going to pay for this home.

Choosing Between The Adjustable Rate Or The Fixed

Although adjustable rate mortgages are more popular worldwide, in the United States more people pursue fixed rate mortgages because the payment plan stays the same throughout the life of the mortgage. The month to month payments you make on the mortgage will be the same in year one as they will be in year thirty, as long as you make them on time. The first steps to buying your first home will come with a choice to either pursue a fixed rate mortgage or an adjustable rate mortgage. Adjustable rate mortgages are often intriguing because the monthly payments are low to begin with and you won’t have to put as much money down towards the principal at the beginning. However after a certain amount of time, usually 3, 5, or 7 years the payments will be adjusted up to whatever the lender says the rates are. So you might be stuck paying really high monthly payments.

The steps for buying your first home don’t have to be so daunting. The experts at www.real-estate-yogi.com can walk you through all your first steps in buying your first home. Visit their website or call them directly at 1-800-987-1397.

Information About The 1st-Time Home Buyers’ Grant

Several years ago, my husband and I went looking for our first home. We didn't have a lot of money to put down, but when we found the house, I was determined to purchase it. I spoke to a friend of mine, asking for her input into where I could find financing sources, and she suggested going to Real-estate-yogi.com. This free consumer resource website was amazing! I learned all about the options available, including first home buyers grants. Let me share some of what we learned.

First time home buyers grants are monies that can be applied to the down payment for or closing costs of a first home. Real-estate-yogi.com points out that the grants do not need to be repaid, which is an enormous help to those with little money but excellent credit scores. The way they work differs from grant to grant, with a common thread being that you have to live in the house; you can’t purchase a rental property with the grant. Some of the grants may require that you live in the home for a certain number of years before you can sell it; if you choose to sell it before that time has elapsed, you’ll have to pay some fees and/or repay the grant.

To qualify for a first home buyer grant, you must not have owned a home before, although some grants do allow this if it was in the very distant past. Real-estate-yogi.com notes that you must also have a specific income. Believe it or not, this is one time that not having a lot of money actually helps you. Each income limit is based on the area in which the house is and how large a family is. Also, some grants are meant to encourage neighborhood development, so if you’re looking for a fancy house in an upscale area, you may not qualify for those grants.

Getting a first home buyers grant can sometimes be done through local resources. Real-estate-yogi.com recommends that you talk to a licensed realtor, as he may have listings of homes for sale in the area in which you’d like to live. You should definitely check out HUD’s website for state programs and grants that can help with the purchase of a first home. Sometimes you will have to fill out the application for the grant, but other times, it must be filled out by a lender for you, and you have to have a house selected first. 

I found Real-Estate-Yogi.com to be very user-friendly and informative, just as my friend had promised. If you have questions relating to financing for your first home, give the knowledgeable staff there a call at 1-800-987-1397 for a free initial consultation. You’ll be glad you did.