3 People the First Time Home Buyer needs on their Team
Heather Dunlop asked:
Many first time home buyers are not sure where to get started. They are ready to buy their first home and want to make sure they don’t make any mistakes. So where do you go first?
There are three people that will be important to the first time home buyer. These people can walk you through the process and help you purchase your first time.
The first person you want on your team is a Realtor. You want to make sure you find a Realtor who specializes in working with first time home buyers. They will have the patience to answer all of your questions and reduce your fears. They have been through the process many times and will be able to anticipate your questions and your needs, making the process easier on the first time home buyer.
Your Realtor can also help you find the other two people you need on your team. Your Realtor will already have relationships with these other people, who are also familiar with working with first time home buyers.
The second person you want on your team is a Mortgage Broker. Again, find a mortgage broker that works with first time home buyers. This mortgage broker will know about the city, state, and federal programs available to help first time home buyers purchase their dream home. They know what kind of loan you can qualify for, how much you will need for a down payment, and the lenders requirements. Your mortgage broker will get your pre-approved so you know exactly how much house you can afford and don’t waste your time looking at houses you can’t buy.
The third person you want on your team is a Home Inspector. As a first time home buyer you are not aware of what is involved in looking at the details of a home to make sure it is safe and will not require costly repairs. Your Home Inspector will go over every nook and cranny and tell you what they find. A good home inspection can save you from buying a home that needs major repairs without you knowing about the. Be at the house with the Home Inspector so you can ask them questions about what they find, giving you a better understanding of the condition of the home.
Build your team with people who specialize in working with first time home buyers. You’ll be glad you spent the time to find the right people to help you.
Beverly
Many first time home buyers are not sure where to get started. They are ready to buy their first home and want to make sure they don’t make any mistakes. So where do you go first?
There are three people that will be important to the first time home buyer. These people can walk you through the process and help you purchase your first time.
The first person you want on your team is a Realtor. You want to make sure you find a Realtor who specializes in working with first time home buyers. They will have the patience to answer all of your questions and reduce your fears. They have been through the process many times and will be able to anticipate your questions and your needs, making the process easier on the first time home buyer.
Your Realtor can also help you find the other two people you need on your team. Your Realtor will already have relationships with these other people, who are also familiar with working with first time home buyers.
The second person you want on your team is a Mortgage Broker. Again, find a mortgage broker that works with first time home buyers. This mortgage broker will know about the city, state, and federal programs available to help first time home buyers purchase their dream home. They know what kind of loan you can qualify for, how much you will need for a down payment, and the lenders requirements. Your mortgage broker will get your pre-approved so you know exactly how much house you can afford and don’t waste your time looking at houses you can’t buy.
The third person you want on your team is a Home Inspector. As a first time home buyer you are not aware of what is involved in looking at the details of a home to make sure it is safe and will not require costly repairs. Your Home Inspector will go over every nook and cranny and tell you what they find. A good home inspection can save you from buying a home that needs major repairs without you knowing about the. Be at the house with the Home Inspector so you can ask them questions about what they find, giving you a better understanding of the condition of the home.
Build your team with people who specialize in working with first time home buyers. You’ll be glad you spent the time to find the right people to help you.
Beverly
Important Facts for First-Time Home Buyers
Anubha Shyam asked:
There are so many things that you have to take into consideration while buying your first home; from location, neighborhood, nearby amenities to price, construction plan and available space. Without proper planning and knowledge of some crucial home-buying facts, you would end up buying something that is highly priced and also no where close to your dream home. For your help, we have compiled a list of essentials that every first-time home buyer should know.
A good credit report will make a difference- All mortgage lenders evaluate the credit report before approving the loan application. A flawless credit report can get you more loan at a better rate of interest. For this reason, spare no effort to make your credit report as faultless as possible. Pay all your bills on time, and get errors and inconsistencies removed from your report. The importance of saving money- You should have adequate amount of money to be able to make the down payment. You can request your mortgage lender to do this. However, if you use your own hard-earned money for the down payment, the lender would get an assurance that he will also get back his money as you won’t step back after investing so much. The need to prepare a financial plan- It is very important to draw a financial plan before even going out to look for a house. With this plan you will get to know two things viz. one, your budget, and two, the kind of home you can actually afford to buy. It will also stop you from over-spending. A proficient real estate agent- The job of a real estate agent is not only to find a house according to your requirements, but also to help you negotiate the price, and detect the imperfections of the house. Home market trends- It is very important to know the current market trends prior to buying your first home. With the knowledge, you will be able to ascertain the true value of the property, and you will also be able to do a comparative study and thereafter choose the best house. Know your desires and requirements- It is very important to ascertain whether your first home is fulfilling all your desires and requirements or not. It is unusually difficult to buy a home, and for most of us, the first home is usually the last one. Hence, do not overlook your needs and desires. A pre-qualification letter makes a difference- A pre-qualification letter proves that you are a genuine buyer and a mortgage lender is ready to help you in your home-buying endeavor. It also provides you the power to negotiate assertively with the seller. Finding the right home- Of course, your real estate agent will help you in your home search, but you can do it on your own too. The internet is a good resource of idyllic properties. You can find your dream home quickly here. Getting the home inspected- The next important thing is to get your home inspected to uncover all the defects, blemishes and imperfections. You can negotiate with the seller persuasively on the basis of the home inspection report. Buying the home- Once, you are fully satisfied with all the aspects of the new home, submit the offer, negotiate and close the deal.
Vincent
There are so many things that you have to take into consideration while buying your first home; from location, neighborhood, nearby amenities to price, construction plan and available space. Without proper planning and knowledge of some crucial home-buying facts, you would end up buying something that is highly priced and also no where close to your dream home. For your help, we have compiled a list of essentials that every first-time home buyer should know.
A good credit report will make a difference- All mortgage lenders evaluate the credit report before approving the loan application. A flawless credit report can get you more loan at a better rate of interest. For this reason, spare no effort to make your credit report as faultless as possible. Pay all your bills on time, and get errors and inconsistencies removed from your report. The importance of saving money- You should have adequate amount of money to be able to make the down payment. You can request your mortgage lender to do this. However, if you use your own hard-earned money for the down payment, the lender would get an assurance that he will also get back his money as you won’t step back after investing so much. The need to prepare a financial plan- It is very important to draw a financial plan before even going out to look for a house. With this plan you will get to know two things viz. one, your budget, and two, the kind of home you can actually afford to buy. It will also stop you from over-spending. A proficient real estate agent- The job of a real estate agent is not only to find a house according to your requirements, but also to help you negotiate the price, and detect the imperfections of the house. Home market trends- It is very important to know the current market trends prior to buying your first home. With the knowledge, you will be able to ascertain the true value of the property, and you will also be able to do a comparative study and thereafter choose the best house. Know your desires and requirements- It is very important to ascertain whether your first home is fulfilling all your desires and requirements or not. It is unusually difficult to buy a home, and for most of us, the first home is usually the last one. Hence, do not overlook your needs and desires. A pre-qualification letter makes a difference- A pre-qualification letter proves that you are a genuine buyer and a mortgage lender is ready to help you in your home-buying endeavor. It also provides you the power to negotiate assertively with the seller. Finding the right home- Of course, your real estate agent will help you in your home search, but you can do it on your own too. The internet is a good resource of idyllic properties. You can find your dream home quickly here. Getting the home inspected- The next important thing is to get your home inspected to uncover all the defects, blemishes and imperfections. You can negotiate with the seller persuasively on the basis of the home inspection report. Buying the home- Once, you are fully satisfied with all the aspects of the new home, submit the offer, negotiate and close the deal.
Vincent
What Are The First Time Home Buyer Benefits to Buying a Home?
Jeff Ragan asked:
You hear that being a first time home buyer is a good idea. But you’re wondering how can that be? Here you are deciding to go deep in debt!!! Isn’t this going against everything you’ve learned? Once you see the many first time home buyer benefits, then you’ll understand why everyone is telling you this is a good idea.
Consider some of these benefits:
Building Equity Pride of Ownership Deductions
Building Equity
One of the first time home buyer benefits is that you are building equity is something rather than just giving your money away. When you are renting, you aren’t building anything, you’re just paying rent. But when you’re buying a home, you’re beginning to build equity. The down payment is the beginning of that equity. As you pay for your home over the next 15 to 30 years, you will be adding equity with each payment. Plus your home will appreciate in value and that adds equity too.
Let’s say down the road there is an event in your life where you need money now. That equity gives you borrowing power. You can borrow a portion of that equity for that emergency. That equity built in your home makes it possible to take care of that emergency right now. Of course, we should guard our equity, but when there is an emergency, you have options when you build equity. Renting doesn’t give you this option.
Pride of Ownership
Another first time home buyer benefits is pride of ownership. This is a key benefit. When you rent you are limited as to what you can do with your home. But when you own you can decorate any way you want! You can enjoy your music at the volume that is good for you.
Plus you don’t have to hear the fights that go on with your neighbors. Of course, that doesn’t mean when you buy a home that neighbors don’t fight, but when you’re renting you hear everything. Consider too, when you rent, your neighbors may enjoy things you don’t like, for example smoking. When they smoke, that smoke comes into your apartment. Not so when you’re buying.
Pride of ownership gives you a sense a security. You don’t have to worry about the rent going up. You now have something that is yours. Not to mention the extra space you have compared to a rental place.
Tax Deductions
There are first time home buyer benefits that are tax deductions. For example you can deduct the interest you paid for your mortgage on your income tax. Now you’re lowering how much you pay in income taxes. Another deduction is your property tax. You can also deduct that on your income tax. You can see now why some people consider their home a tax shelter. They can use it to lower their income tax.
An additional plus is when you make home improvements. Save those receipts because many of those improvements can also be deducted on your income taxes. Having a record of these improvements can be added to the value of your home. Guess what, those improvements have added equity to your home. I remember adding a humidifier to the furnace of my rental home when I was renting. Unfortunately, when I moved the humidifier had to stay, so that purchase only benefited me while I stayed in the town home I was renting. I couldn’t take it with me.
These are just a few of the first time home buyer benefits. As you search further you may find tax credits available to you. So buying that first home really is a good idea.
Jeffrey Ragan has several years of experience helping people reach their goals and wants to help you learn more about the home buying process and other helpful information on their website, First-Time-Home-Buyer- Solutions.com.
Margaret
You hear that being a first time home buyer is a good idea. But you’re wondering how can that be? Here you are deciding to go deep in debt!!! Isn’t this going against everything you’ve learned? Once you see the many first time home buyer benefits, then you’ll understand why everyone is telling you this is a good idea.
Consider some of these benefits:
Building Equity Pride of Ownership Deductions
Building Equity
One of the first time home buyer benefits is that you are building equity is something rather than just giving your money away. When you are renting, you aren’t building anything, you’re just paying rent. But when you’re buying a home, you’re beginning to build equity. The down payment is the beginning of that equity. As you pay for your home over the next 15 to 30 years, you will be adding equity with each payment. Plus your home will appreciate in value and that adds equity too.
Let’s say down the road there is an event in your life where you need money now. That equity gives you borrowing power. You can borrow a portion of that equity for that emergency. That equity built in your home makes it possible to take care of that emergency right now. Of course, we should guard our equity, but when there is an emergency, you have options when you build equity. Renting doesn’t give you this option.
Pride of Ownership
Another first time home buyer benefits is pride of ownership. This is a key benefit. When you rent you are limited as to what you can do with your home. But when you own you can decorate any way you want! You can enjoy your music at the volume that is good for you.
Plus you don’t have to hear the fights that go on with your neighbors. Of course, that doesn’t mean when you buy a home that neighbors don’t fight, but when you’re renting you hear everything. Consider too, when you rent, your neighbors may enjoy things you don’t like, for example smoking. When they smoke, that smoke comes into your apartment. Not so when you’re buying.
Pride of ownership gives you a sense a security. You don’t have to worry about the rent going up. You now have something that is yours. Not to mention the extra space you have compared to a rental place.
Tax Deductions
There are first time home buyer benefits that are tax deductions. For example you can deduct the interest you paid for your mortgage on your income tax. Now you’re lowering how much you pay in income taxes. Another deduction is your property tax. You can also deduct that on your income tax. You can see now why some people consider their home a tax shelter. They can use it to lower their income tax.
An additional plus is when you make home improvements. Save those receipts because many of those improvements can also be deducted on your income taxes. Having a record of these improvements can be added to the value of your home. Guess what, those improvements have added equity to your home. I remember adding a humidifier to the furnace of my rental home when I was renting. Unfortunately, when I moved the humidifier had to stay, so that purchase only benefited me while I stayed in the town home I was renting. I couldn’t take it with me.
These are just a few of the first time home buyer benefits. As you search further you may find tax credits available to you. So buying that first home really is a good idea.
Jeffrey Ragan has several years of experience helping people reach their goals and wants to help you learn more about the home buying process and other helpful information on their website, First-Time-Home-Buyer- Solutions.com.
Margaret
IRA Withdrawal Penalty Exception for First Time Home Buyer?
jjoonthego asked:
If I roll my cash balance pension benefit from a former employer in to an IRA, can I immidiately withdrawal $20,000 without paying the 10% penalty by using the $10,000 first time home buyer exception for both myself and my wife? I am 38 and the money would be used to purchase our first home.
If I roll my cash balance pension benefit from a former employer in to an IRA, can I immidiately withdrawal $20,000 without paying the 10% penalty by using the $10,000 first time home buyer exception for both myself and my wife? I am 38 and the money would be used to purchase our first home.
Thanks.
Jeremy
What does a real estate agent do for a first time home buyer?
Chuck asked:
We are dealing with a “new” realtor, with not much experience. This person is a close friend who wants to help us buy our first home. Does the buying process really entail all that much from the buyers realtor? What services should I expect, so I know I’m not making the wrong choice. What do I need to be careful of?
Eugene
We are dealing with a “new” realtor, with not much experience. This person is a close friend who wants to help us buy our first home. Does the buying process really entail all that much from the buyers realtor? What services should I expect, so I know I’m not making the wrong choice. What do I need to be careful of?
Eugene
Facts for First Time Home Buyers
Sonia asked:
Are you out for the first time hunting for a house? Finding a home is more complicated than it appears to first-time home buyers. There are a lot of things to be considered. Purchasing a home for the first time is a huge financial step for anyone. In this time of financial crisis, be true to yourself. Your financial capacity and readiness to buy a home are the two biggest problems that can pop up in your mind. Here are some helpful facts for first-time home buyers that can help you make a wise investment.
1. Your Finances. Unless you have all the money to buy a home, you have to go select a mortgage lender to help you financially. A mortgage lender will go through all the details with regards to your finances and you too should do the same assessment of the kind of mortgage lender to choose from. As a first-time home buyer, choose one that offers a fixed rate. A fixed rate maintains the same interest rate throughout the term of your loan. Be realistic of what you have and what you can afford. Never allow your mortgage lender to get you to agree on a term that is definitely heavy on your pocket.
2. Find the best real-estate agent for you. An agent must be someone who will listen to you, easy to get along with and has the necessary skills toaddress your needs. As a first-time home buyer, you should consider a referral from you familya nd friends. They know you better than anyone else and knows what you need.
3. Select a neighborhood. Do not rush into purchasing a home without considering the environment you are about to join to. What kind of neighborhood would you want your kids to grow up into? Your lifestyle?. Is the neighborhood accessible? This means convenient time commuting to and from work. Do consider also the educational side of it. It is convenient to send your kids to a school that is close by, not having them travel all the way across town and create unnecessary stress to both you and your children. Market and hospital accesibilty should also be considered. Most of all, your neighborhood has a great influence on your kids; choose one that provides healthy and good influence on your children.
4. Do a home inspection. Before you decide to buy, do a home inspection first. As a first-time home buyer, it is a must to check out and note on these things. The attic plays a vary major role in your inspection. Most buyers often disregard t the attic. However, the attic can give you clues to a house including the past things that has occurred there. Any roof or trusses damage are not visible as you view the roof but you can see it in the attic. If the rafters have a different color other than its natural wood, it means the house was on fire before. You can also inspect any water damage and be sure to check out leaks and damage in the plumbing throughout the house.
These are just some of the many practical things to note as a first-time home buyer. There are several details you have to undergo in your buying a home for the first time. Buying a home is not only to provide your family a better dwelling than the usual stiffling apartment, but is also your investment of a lifetime. Be practical and wise. Happy house hunting!
Monica
Are you out for the first time hunting for a house? Finding a home is more complicated than it appears to first-time home buyers. There are a lot of things to be considered. Purchasing a home for the first time is a huge financial step for anyone. In this time of financial crisis, be true to yourself. Your financial capacity and readiness to buy a home are the two biggest problems that can pop up in your mind. Here are some helpful facts for first-time home buyers that can help you make a wise investment.
1. Your Finances. Unless you have all the money to buy a home, you have to go select a mortgage lender to help you financially. A mortgage lender will go through all the details with regards to your finances and you too should do the same assessment of the kind of mortgage lender to choose from. As a first-time home buyer, choose one that offers a fixed rate. A fixed rate maintains the same interest rate throughout the term of your loan. Be realistic of what you have and what you can afford. Never allow your mortgage lender to get you to agree on a term that is definitely heavy on your pocket.
2. Find the best real-estate agent for you. An agent must be someone who will listen to you, easy to get along with and has the necessary skills toaddress your needs. As a first-time home buyer, you should consider a referral from you familya nd friends. They know you better than anyone else and knows what you need.
3. Select a neighborhood. Do not rush into purchasing a home without considering the environment you are about to join to. What kind of neighborhood would you want your kids to grow up into? Your lifestyle?. Is the neighborhood accessible? This means convenient time commuting to and from work. Do consider also the educational side of it. It is convenient to send your kids to a school that is close by, not having them travel all the way across town and create unnecessary stress to both you and your children. Market and hospital accesibilty should also be considered. Most of all, your neighborhood has a great influence on your kids; choose one that provides healthy and good influence on your children.
4. Do a home inspection. Before you decide to buy, do a home inspection first. As a first-time home buyer, it is a must to check out and note on these things. The attic plays a vary major role in your inspection. Most buyers often disregard t the attic. However, the attic can give you clues to a house including the past things that has occurred there. Any roof or trusses damage are not visible as you view the roof but you can see it in the attic. If the rafters have a different color other than its natural wood, it means the house was on fire before. You can also inspect any water damage and be sure to check out leaks and damage in the plumbing throughout the house.
These are just some of the many practical things to note as a first-time home buyer. There are several details you have to undergo in your buying a home for the first time. Buying a home is not only to provide your family a better dwelling than the usual stiffling apartment, but is also your investment of a lifetime. Be practical and wise. Happy house hunting!
Monica
First Time Home Buyer Assistance – Can the Seller Contribute?
Steve Hattan asked:
First time home buyer assistance programs such as the AmeriDream and Nehemiah were extremely popular over the last several years. They were popular because the down payment provided to the buyer was considered a gift that didn’t have to be paid back and it covered the entire down payment amount.
Unfortunately, for whatever reason, these first time home buyer assistance programs were put to rest on October 1, 2008. Whether they will be revived is yet to be seen.
So what are the first time home buyer options? If you’re a police officer, fireman or a teacher there are programs designed specifically for you such as HUD’s (Dept of Housing and Urban Development) Good Neighbor Next Door program. If you are not in one of these professions you can check with your local lender to see what other programs or state grants are available.
If all of these options don’t work then it’s time to consider the home seller of the property you would like to buy from.
The way the rules are today, a home seller cannot give a down payment directly to the buyer. For example, if you were going to purchase my home, I cannot write a check to you for $5,000 and then have you use that money for your down payment. In the industry it’s called a ‘RESPA’ violation. Simply put, it’s illegal.
The good news is, under certain types of loans such as an FHA loan, a seller can pay up to 6% of the buyer’s closing costs. When you take into consideration that an FHA loan only requires a three percent down payment it’s possible, in many circumstances, that a buyer could bring very little cash to the closing, especially when the buyer receives prorated tax credits.
What closing costs can a seller pay for the buyer? As a general rule, anything on the second page of the Settlement Statement (an itemized list of debits and credits for both the buyer and seller provided at closing) in the buyers expense column can be paid for by the seller. It used to be that a seller could not pay pre-paid mortgage insurance required by FHA. However, that rule has recently changed and now sellers can pay the pre-paid mortgage insurance.
In summary, first time home buyer assistance programs are no longer under most circumstances. However, if a buyer is securing a FHA mortgage then the seller can pay up to six percent of the loan amount to pay for the buyer’s closing costs without violating any rules or laws. If you are need first time home buyer assistance be sure to investigate FHA loans.
Julio
First time home buyer assistance programs such as the AmeriDream and Nehemiah were extremely popular over the last several years. They were popular because the down payment provided to the buyer was considered a gift that didn’t have to be paid back and it covered the entire down payment amount.
Unfortunately, for whatever reason, these first time home buyer assistance programs were put to rest on October 1, 2008. Whether they will be revived is yet to be seen.
So what are the first time home buyer options? If you’re a police officer, fireman or a teacher there are programs designed specifically for you such as HUD’s (Dept of Housing and Urban Development) Good Neighbor Next Door program. If you are not in one of these professions you can check with your local lender to see what other programs or state grants are available.
If all of these options don’t work then it’s time to consider the home seller of the property you would like to buy from.
The way the rules are today, a home seller cannot give a down payment directly to the buyer. For example, if you were going to purchase my home, I cannot write a check to you for $5,000 and then have you use that money for your down payment. In the industry it’s called a ‘RESPA’ violation. Simply put, it’s illegal.
The good news is, under certain types of loans such as an FHA loan, a seller can pay up to 6% of the buyer’s closing costs. When you take into consideration that an FHA loan only requires a three percent down payment it’s possible, in many circumstances, that a buyer could bring very little cash to the closing, especially when the buyer receives prorated tax credits.
What closing costs can a seller pay for the buyer? As a general rule, anything on the second page of the Settlement Statement (an itemized list of debits and credits for both the buyer and seller provided at closing) in the buyers expense column can be paid for by the seller. It used to be that a seller could not pay pre-paid mortgage insurance required by FHA. However, that rule has recently changed and now sellers can pay the pre-paid mortgage insurance.
In summary, first time home buyer assistance programs are no longer under most circumstances. However, if a buyer is securing a FHA mortgage then the seller can pay up to six percent of the loan amount to pay for the buyer’s closing costs without violating any rules or laws. If you are need first time home buyer assistance be sure to investigate FHA loans.
Julio
Am I qualified for the First time home buyer tax credit?
Jon asked:
My grandmother lives in a Co-op in New York and I help her pay the maintenance, I used to live with her for several years until 2 years ago. Both of our names are on the co-op contract as share holder as well as on the Mortgage Interest Statement, Form 1098. I never took a mortgage or actually purchased any home. My question is, am I qualified for the 8000$ first time home buyer tax credit in case I buy an apartment in 2009?
Danielle
My grandmother lives in a Co-op in New York and I help her pay the maintenance, I used to live with her for several years until 2 years ago. Both of our names are on the co-op contract as share holder as well as on the Mortgage Interest Statement, Form 1098. I never took a mortgage or actually purchased any home. My question is, am I qualified for the 8000$ first time home buyer tax credit in case I buy an apartment in 2009?
Danielle