First Time Home Buyer A Review of the Home Buying Process

Izvor: KiWi

During the housing boom of the early to mid 2000s, almost anyone could qualify for a mortgage. Even a first time home buyer with bad credit and no down payment could find a willing lender. Those were the days of 'stated-income' loans, subprime lending, and other high-risk products. But much has changed since then.

Many times buyers, especially first time home buyers, are interested in a brief overview of the process of buying. This article attempts to outline the steps of the home buying process from beginning to end.

First time home buyers can be very much attached to the property they have in mind and losing the deal leaves them heartbroken. Therefore, the first time buyers should consider employing services of mortgage specialists or seeking assistance from an expert from mortgage services.

There is never a rush to bid on a property without researching the history of the areas home prices. Many realtors will print up all the homes sold in the area within the past six months to help the first time home buyer make an educational and informed decision. There is nothing wrong with beginning a bid low since a bid can be raised. Set a limit for yourself for each property that is bid on and once you reach that limit, if another bid comes in higher, then the first time home buyer must decide is the property worth pushing their limit. In many real estate markets all around the US, home sales have grown close to 80% and many feel rushing to buy is the only answer. This is not true, especially for a first time home buyer.

The housing downturn has created significant demand for homeownership, especially among first time home buyers (FTHB), according to a survey on Realtor.com. That is great news for the real estate market, but there are some significant challenges that Realtors and Mortgage Professionals will face.

"The real estate industry is starting to gain momentum again. With the help of a real estate professional you can get the most value on either side of the coin," says Knezevic. Californians can now feel more relaxed and confident in purchasing their first home. With the right help and knowledge, first time home buyers can feel secure about their big investment throughout the entire process.

Before wasting time searching around for properties, apply for a prequalification letter. This can be done over the phone, on the internet, or at a bank in a matter of minutes. By doing this, it will allow the realtor and first time home buyer to focus and zero in on the properties that fit into this price range. Seeking out more expensive properties when your financials show it is unaffordable is a waste of time. Obtain the prequal letter before searching, before making a bid review the price of properties sold in the area within the past six months, and set limits on your bidding. Remember, there are always properties around to buy and when the right one comes along, the first time home buyer will have no doubts.

Make sure that you have thought about - and saved - a down payment. "No down payment" mortgages are available, but in order to secure a low interest rate and to decrease the amount of your monthly mortgage payment, having a down payment is essential when buying a house. Look at the different options available to you in order to amass that down payment, including saving or the RRSP Home Buyers Plan, which allows first time home buyers to use up to $25000 tax free from your RRSP to purchase a home.