Tips for buying your first home.

Things to know when buying your first home.

You've made the decision to make one of the largest investments you'll ever make in your life... buying your first
home. You're excited, but at the same time, anxious. Some of the questions you may be asking are: Will I be
able to afford the home of my dreams? Do I have enough money for a down payment? Can I get a home
inspected before I make an offer?

Rest assured, you are not alone. According to a very recent National Association of REALTORSŽ Profile of
Home Buyers and Sellers, first-time homebuyers accounted for 40 percent of the homes purchased. The
homebuying process can be overwhelming, but if you go into it prepared, your first purchase can be a good
experience. Here are some things to consider before making the plunge.

Getting a mortgage - Fear of being rejected for a home loan is one of the main concerns for first-time
homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective
homes. This will not only help you feel more confident, it will also give you an advantage when there are
multiple offers for a specific home. The fact that your loan has already been approved is of great value to the
seller: because it shortens the purchase process, and there is less of a chance that the buyer will back out of
the sale.

Mortgage Payments - The costs involved in the purchase of a home can be overwhelming to first-time buyers.
However, with the help of a lending professional, you can calculate out how much you will be able to pay each
month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.

Down-Payment - The down-payment amount varies depending on the value of the home you choose and your
mortgage lender. And in some cases, first-time home buyers can purchase a home with no money down.
Your loan consultant will be able to explain the different options available to you.

Closing Costs - First-time buyers often forget to consider the closing costs when making an offer on a home.
Paying closing fees of up to 1.5 to 5% percent of the home sale amount is not unusual. Add that to the down-
payment, and you'll have quite a sum to raise before the final papers can be signed. However, a smart first-
time buyer takes this into account before making an offer, and with some professional help, the costs can be
estimated in advance.

Making offers - Don't feel pressured into making an offer on the first home you see. This is a common
mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace.
When you do decide on a home to make a bid on, work with your own buying agent to get all of your questions
answered first before making an offer. But don't wait too long to make an offer. The longer you wait, the greater
the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

Condition of the Home - Buying a "problem" home is another fear of first-timers. A home that needs major
repairs can become a costly venture. And, unless the asking price is adjusted to reflect the hidden repairs
needed, chances are the home is not worth as much as the seller is asking for it. To avoid unfortunate
surprises, your buying agent may advise you to hire a home inspector before making a serious offer. That way,
you know what you are getting into.

Above all, remember that there are no silly questions. Make sure you understand and are comfortable with
every aspect of the transaction. Your loan professional can be an invaluable asset in helping you make
educated decisions so that your first-home purchase is a rewarding experience.