First Time Home Buyer Resources?

[thecarczar]

Can you give me some suggestions for ways to be more informed and save money throughout the home buying process? I'll be making the purchase in Q1 2011.

Books, websites, personal nuggets, etc. would all be helpful.

[activeonlooker]

Check with your local Chamber of Commerce, Community College, Banks, etc. for 1st time homebuyer classes.

Always remember - just because the bank says that you can afford $XXX, that does not really mean that you can.

[8 Bit WWBG]

...:::"Always remember - just because the bank says that you can afford $XXX, that does not really mean that you can.":::...

This is one of the most important things to remember. Build your budget based on what YOU can afford. Also, do not forget that any payments the bank quotes you may not include taxes and interest. I believe loan calculators only calculate the principal and interest.

What you are obligated to spend may be influenced by state laws, as well as the environment at the time. If you are in a strong buyers market, you might be able to get the sellers to shoulder a lot or all of the expenses. Some sellers can be coerced into paying closing costs, inspections, and making all sorts of repairs. If you are in an area where the market is still competitive, this may not be possible.

Do you have your own attorney? In some states, one attorney executes both sides of the contract. You could negotiate with your realtor as well as to what % he/she will take. If homes are not selling well, the selling agent may be willing to take a lower commission. On the flip side, you may want to offer your agent a bigger commission if he/she is successful at negotiating certain terms (eg. getting closing costs paid).

Are you single, in a relationship, have a family? Research things that are important to you and others in your unit. Are schools an issue? What about your commute?

Best of luck.

[Peace77]

The first thing to do is to use annualcreditreport.com and check your credit report. If there are any errors, it takes time and effort to correct them.

Errors can cause you to be denied a loan or have to pay a higher interest rate.

There a grant programs and first time homebuyer programs all over. Some are national, many are state based and others are county or city run. Not all realtors are familiar with them. Some programs are based on occupation. Teachers, police officers and firefighters are given incentives to live in the city, for example.

Some programs are for veterans or the disabled.

I suggest googling your state and "first time homebuyer".

Peace,
Anne

[happytraveler]

I am not sure what the current rules are, but it used to be that you could avoid having to purchase and pay for Private Mortgage Insurance (PMI) if you put a 20% or greater down payment on the house when you purchased it. With the recent housing/financial "crisis", I am not certain if those same rules currently apply--someone here can likely share what the current rules are. Anyway, if you can muster together a large enough down payment, you won't need to pay PMI, which will provide you with a savings at closing, and reduce your on-going monthly expenses.