Tips on Buying Your First Home

Currently, the economy is in a slump and people are finding it increasingly harder to find employment or pay off their bills. However, it is a great time to buy a home either to live in, an investment, to sell or to rent out to other people. Mortgage rates are very low right now due to cheaper than ever property prices.

Now would be a great time to buy a house for a low price and sell at a higher one to make a profit. In order to buy smart, read the tips below to learn more:

1. Is buying the best idea for you right now?

Buying a house has to make sense with your current financial or living situation. Do you plan to move in the following years? Are you feeling uncertain about your job status? Think about these questions before you decide to invest in a home. It would be best to stay in a house for a number of years so it can accrue value.

2. Do you have the cash and credit to cover the expenses of paying for a home?

It’s very important that you have a good credit score before you go talk with your real estate broker about purchasing a house. Oftentimes, people that have bad credit are not eligible to take out a mortgage loan. You will also need cash on you as well to hand over a down payment.  Remember to look into getting preapproved by a lender or mortgage broker.

3. If you can’t pay your entire down payment up front, look into other alternative methods.

Talk to your mortgage officer about your problems and work out a solution. You, as the homeowner, should also look into government-backed loans and private mortgage insurance that allow you to pay the mortgage off in smaller increments.

4. Don’t shop for an exorbitantly priced home.

Yes, that house with the four-car garage, huge backyard and pool looks very enticing but do you really need it? Think about the budget you set out beforehand and stick to it.

5. Always remember to set up a house inspection.

Consider inspecting a home before you cough up the dough for a down payment or mortgage loan. Often, people selling real estate will exaggerate the amenities of the home and a tour of a house doesn’t always allow you to examine every feature in detail. Is this house really worth the cost?