Buying my first home

Are you getting ready to buy your first home and not quite sure what to do? You are not alone. Many Americans buy their first homes each year and are in the same situation. The first thing you need to do when considering buying your first home is to talk with a mortgage professional and get pre-approved for a mortgage. This is going to let you know how much of a home you can qualify for and afford. You will get an idea of how much your monthly payments will be as well. By getting pre-approved you will have more buying power over a home-buyer that has not been pre-approved.

Next, you will want to enlist the help of a Realtor you like and trust. An experienced Realtor will not only show you homes, but will be very helpful when you are submitting an offer and negotiating the terms of your purchase agreement. Buying a home without a Realtor is like going to court without a lawyer. I would not recommend it.

Becoming familiarized with your credit history well in advance of a purchase, 1 to 2 years, is highly recommended. That way you have time to make improvements and build credit so when you apply for a loan you will have access to better rates and lower payments, as well as a number of loan programs to choose from.

One good idea is to attend several open houses. Start getting a feel for what you like, and what you don't like. Also, see what homes are selling for in your area. Once you know your local market, you are in a much better position to make an offer.

How long do you expect to be in your first home? This is an important question because most people, especially first time home buyers, move on average every 3-5 years. For example, the lower introductory rate of an adjustable rate mortgage may be smarter if you know you will be out of the home prior to the first rate change. Be sure to ask your mortgage professional to explain which loan programs make the most sense for a short term stay versus living in the home forever.

If you plan on staying in your new home for awhile, make sure you have enough room for exspansion.

Keep in mind that the average person in the US only stays in their home for less than 10 years.

There is a lot of paperwork involved in a home purchase. Most of it deals with the mortgage. Delay in getting all requested copies to your mortgage professional quickly or giving inaccurate or incomplete information can delay your closing or cause your purchase contract to expire and result in the loss of your earnest money.

Buying a home is a very emotional experience. You will need to count on the best real estate and mortgage professionals to help keep you on the right track during this exciting journey.

» DISCLAIMER: The information contained in this article on 'Buying my first home' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.