The Secrets of Successfully Purchasing Your First Home

[caption id="" align="alignright" width="554"] (image credit: NiagaraBuzz.ca)[/caption] Buying a home for the first time isn't a walk in the park, especially if you consider the status of the real estate industry today. While everything about it can be learned by reading posts online and asking the so-called "real estate experts," there are some things that you still might not know. So this is what this article is all about - the best kept secrets in order to successfully buying a home. First of all, once you decide you'd purchase a home, you have to make it a priority. Some people make the mistake of trying to achieve several things all at the same time. For instance, you can't think about buying a new car while you apply for a mortgage. You likewise cannot quit your job and look for another one while searching for a new home to purchase. The key is priority. You must must what's yours. So now let's begin with those secrets and tips. In this website I found online called Keys To My Home, I found three secrets for first-time home buyers that are worth sharing:

Get your finances in order. Find out what your credit report and credit score are and correct any inaccuracies. Lenders look at factors called the four Cs of credit: credit history (timely bill paying), capital (money available for a down payment), capacity (income versus debt), and collateral (the value and condition of the house). Look for down-payment and closing-cost assistance programs. Some nonprofit organizations and state or local government agencies can help you with down payment and closing costs through grant money or low-interest loans. Make sure home ownership fits with your lifestyle. If you will be in a particular community for less than three years, if the local economy is not doing well, if unemployment is rising, or if your future income will not provide you with enough for mortgage payments and other financial responsibilities in owning a home, then renting may provide the better option. Read more about it by clicking the link.

[caption id="" align="alignleft" width="300"] (photo credit: BankingSense.com)[/caption] It is quite true that many people fail to recognize the importance of figuring out if the kind of lifestyle they have is ideal for home ownership. The thing is owning a home is very different to that of renting. Some people opt to rent because of the kind of life they live. So if you do wish to get your own home soon, figure out for yourself if your work, social life, and your habits fit to you becoming a homeowner. Meanwhile, an HGTV.com article titled "10 Best-Kept Secrets for Buying a Home" talked about how crucial it is to get pre-approved before even starting your search for a home and being wary about border disputes.

Get Pre-Approved for Your Home Loan There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can't afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Do your research: Learn about junk fees, processing fees or points and make sure there aren’t any hidden costs in the loan. Avoid a Border Dispute It’s absolutely essential to get a survey done on your property so you know exactly what you’re buying. Knowing precisely where your property lines are may save you from a potential dispute with your neighbors. Also, your property tax is likely based on how much property you have, so it is best to have an accurate map drawn up. Find out more about this article by visiting the link.

Well, as a first-time home buyer, one of the things you should avoid is wasting your time. And this is quite true because a lot of people are so excited in searching for potential homes to buy without realizing that they actually don't qualify for a loan. Lastly, BankRate.com discusses credit scores as a critical factor in getting your loan approved.

How to raise the credit score To improve their credit scores, buyers should pay off past-due bills, pay every bill on time and reduce their balances to less than 30 percent of the credit limit on every account. Also, it is best to have three to five credit accounts, such as a car loan, student loan or credit card, for one year or longer. Experts recommend against frequently switching credit cards to get the best rate, though. Lenders do not want to see a lot of credit inquiries or too many new accounts because this could indicate someone who is about to take on a lot of extra debt. Article source: http://www.bankrate.com/finance/mortgages/4-secrets-to-budgeting-for-a-home-purchase-1.aspx

So you should have realized by now that buying a home for the first time is not just about the fun part of searching for prospects. The secret to succeeding is learning all the aspects of the entire process, not just the ones that are interesting to you.

The Secrets of Successfully Purchasing Your First Home was originally published on Window-Treatments.net