Mortgage Insurance - Articles & Advice

Helpful Hints for First-Time Home Buyers

Buying a house can be a daunting task, even for someone who has owned several homes. My husband and I recently purchased our first home together, and it was hard to find good advice that we truly found useful. We had to learn a lot on our own, but at least now we
feel comfortable and knowledgeable about the whole process. Here are some helpful hints we picked up along the way:

1. Use your online resources.
Almost every state and local government has a website where you can
research real estate information. The data on home sales, taxes, and
neighborhoods is invaluable when you are shopping for a home. We were able to find out the most recent sale prices in the neighborhood we selected, and we didn’t have to rely on a real estate agent to get the data for us. Doing the research yourself
will make you more knowledgeable about the market, which is key to making a good purchase.

2. Be realistic about how much you can spend.
Try to buy a home in a price range that allows you to put down 20%.
If you put down less than this, you will have to pay PMI (private
mortgage insurance) to protect the lender in case you default on the
loan. I know that 20% is a lot, but it’s not unrealistic. You may
not be able to do it on your first home, but hopefully you can on your second home. The profits from the sale of my condo enabled my husband and me to have more than enough for the 20% down payment on our home. But we didn’t put it all down on the home – we
saved some of the profits for the unexpected expenses that come with
buying a home. We suggest that you do the same.

3. Shop for a home in the winter, preferably around the holidays.
Since most people just aren’t interested in buying a home when they are trying to deal with the holidays, you can pretty much be one of the few buyers out there. We bought our home right before Christmas, and it was definitely a buyers market. We had our pick of homes and were able to underbid on the asking price, even though we live in one of the hottest real estate markets in the country.

4. Use a smaller mortgage company that can offer personal service.
People tend to go with large, well-known mortgage companies, since that’s all they know. But the smaller, regional companies provide excellent customer service, and can often give you better rates than the big companies. Since they don’t advertise and instead rely on word-of-mouth, they have to be good in order to get your service. We started off with a big-name company, but in the end, we went with a regional company because they had better rates and better customer service.

5. Always have a home inspection.
I think most people know this fact already, but it is really important in areas with a hot real estate market. It can be easy to get caught up in bidding wars, and to want to get a house at all costs. Some friends of ours wanted a house so badly that not only did they overbid, but they also waived the home inspection. They got
the house – and right along with it they got several thousand dollars worth of damage that would have been found in an inspection.

As a final note, try to remember that buying a home doesn’t have to be scary. It’s very exciting to own your own home, so think of all the good things that will come once you have made it through the home-buying process. If you follow the advice above, then you should be well-equipped to make it through unscathed.

Rachel Greenberg has a background in business and finance, and she received her MBA from Duke University in 1999. She writes fun and informative pieces for her website http://www.bargainfamily.com - which she created with her husband Lee. The website provides advice and recommendations for families on various products and services for their homes, lives, and businesses.

Related Pages

Insurance - How to save on home insurance and private mortgage insurance - Sources for online home insurance quotes - Save thousands by avoiding paying private mortgage insurance.

Mortgage Companies - Find mortgage companies online and save on your mortgage - Sources for online mortgage companies - Save thousands by avoiding paying private mortgage insurance.

Mortgage Brokers - Shop these top lenders for comparison quotes.

Selecting The Right Mortgage - How to choose the right mortgage based on your lifestyle - Advice on the best mortgages for different phases of life, future income changes, and risk levels.

Down Payment Leverage - Avoid PMI with a two-loan strategy. How to grow your equity faster.

Online Lenders - Tips on evaluating online lenders and their offerings.

Refinance- Tips on when refinancing is the right decision - How to avoid paying points and other lender fees.

Home Loan Online - Discover the best ways to get the lowest rates - Links for checking current rates.

Loan Directory - Complete home loans directory for thousands of loan products, mortgage companies, brokers, and lenders. Search our loan directory by keyword or by category for complete listings of all things related to mortgages, home equity loans, refinance, and more.

In The News

	Web Home-Loans-Help.com