Purchase Your First Home with Confidence

If you are making the transition from renter to homeowner, you're not alone. In 2004, 40 percent of homebuyers were purchasing for the first time, according to "The 2004 National Association of REALTORS� Profile of Home Buyers and Sellers."

With interest rates at all-time lows and a booming real estate market, now's a good time to purchase real estate. However with the prospect of making one of the largest investments you'll ever make in your life, you can easily become overwhelmed. 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? Will I make smart home buying decisions? If you go into the process prepared, your first purchase can be a good experience.

Resources--Before starting out, educate yourself on the process. Check your library or local newspaper to find a homebuyer seminar that you can attend. The U.S. Department of Housing and Urban Development has an entire section on its website (www.hud.gov) devoted to homebuyers. It has a list of common questions of first-time homebuyers, information on mortgage and home-buying programs, access to housing counselors, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Other informative sites to check out are www.ginniemae.gov, www.realtor.com and prudential.com.

Your real estate professional is also a great resource. Don't hesitate to let him or her know that you are new to the process. They will expect you to have questions at each step-from house hunting, to making an offer to the closing.

The costs involved in the purchase of a home can be overwhelming to first-time homebuyers. There are mortgage costs, the down payment, and closing costs to think about.

Affordability--By looking at your income and debt ratio, your sales professional can help you calculate how much you can afford each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, utilities, and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance, more commonly referred to as PMI.

Mortgage payment--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 where there are multiple offers for a specific property. In addition, 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. If you don't have a specific mortgage lender in mind, ask your sales professional for a recommendation.

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 homebuyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down payment. Your real estate professional will be able to explain the different options available to you.

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 decide on a home to make a bid on, work with your real estate professional to get all of your questions answered 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.

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

Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/

Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

---

Real Estate Lease Option Danger

Why are real estate investors having so much success offering... Read More

Tax Free Exchanges: Watch out for the New Residence Rules

On October 22, 2004, President Bush signed tax legislation that... Read More

Crossing the Gap from this Home to the Next: Bridge Loan

So you're thinking of getting into a bigger house. You... Read More

Dont Sell Your House--Ever!

Keeping your existing house when you buy a new one... Read More

Do You Need to Download a Landlord Inventory On-Line Today?

Do you need to download a Landlord Inventory on-line now?... Read More

Preparing To Make A Zero Down Offer

I'm going to focus... Read More

Seller Financing - Six Safety Tips

Why offer seller financing when you sell? A higher price,... Read More

Real Estate for Beginners: Residential Property Taxes

Whenever you own a piece of land, you will be... Read More

What?s Your Style? A Guide to America?s Most Common Home Styles

Styles of houses vary across the country. From the New... Read More

For Sale By Owner - Use This Tip To Sell Your Home Quicker and At a Better Price

Your house is for sale by owner (fsbo), Along with... Read More

Selling by Owner Tips

Do strangers scare or intimidate you? If you're planning to... Read More

Where To Start In Looking For A Central Illinois Realtor

Central Illinois is an excellent location for families and businesses.... Read More

European Second Home Prices Wilt in Drought

Spain and Portugal have suffered one of their worst droughts... Read More

Maui Realtors: What You Need To Know

Maui is a great place for families of any size.... Read More

First-time Home Buyers - 100% Home Loans

There is an increasing trend in South Africa that is... Read More

Successful Property Letting And Management

Successful Property Letting And Management is not something that just... Read More

The Costs of Transforming Your Home into a Buyers Dream House

Turning your house into the home of a buyer's dreams... Read More

How To Get Started In Preconstruction Investing?

Through our website the most common question that we receive... Read More

Property Investing ? Port Melbourne Life on the Edge

Property investing prices pick up following a cooler winter last... Read More

Expense List for Buying a Home

There are many expenses that come with buying a home.... Read More

Finding Structural Problems During Escrow ? Upscale Home Example

When buying and selling homes, the property purchase is often... Read More

Buying Rental Property - Avoid Sellers Tricks

Be careful when buying rental property. We stayed at a... Read More

Financing Houses

What Real Estate Lenders Look ForLenders control many programs --... Read More

Don?t Just be a Real Estate Agent, be a Professional!

Buyer Broker Agreement? What's that? Most agents don't ask their... Read More

Selling Houses Fast: Basics of Design & Color Psychology

Fixing up houses to ready them for sale includes a... Read More

How To Simplify Your Real Estate Buying/Selling Experience

Today's real estate consumer has a lot to consider during... Read More

How To Buy Property in Spain Safely

Buying property abroad is not an undertaking one should embark... Read More

What is a Predatory Lender?

Several months ago, the 3,000-member California Association of Mortgage Brokers... Read More

Moving On: Powerful Tips For Selling Your Home

Maybe you're moving to a larger home to accommodate a... Read More

How to Make Money from the California Real Estate Gold Rush

What do the Californians know that we don't?What is so... Read More

Real Estate Investing - Basis Explained

Our complex IRS code requires that your, as a real... Read More

Nobody Loves A Landlord

The typical landlord starts off life as a light hearted... Read More

Selling Your Home: 5 Deal Killers That Are Lurking In Older Homes

You've listed your home for sale, you have a Buyer... Read More