HOW TO BUY A HOUSE

So, you're thinking about buying your first home, condo or town home? When you buy a home the procedure of buying property can be such a rewarding venture whether you look at it through a personal and financial aspect.

Why buy a home? There are pros and cons to buying a home:

Pros are such as having a stable place to live, great use of your money value, the home increase in value and having a home for tax benefits. The cons are such as very time consuming and costly, you will have maintenance at your own expense and you can have a hard time moving again.

Homes most likely increase in value over time, which is such a positive investment. When you are paying down your debt on your mortgage you are building equity. So, it's such a liberating feeling know although you have a mortgage payment every month at least your investment on your property has a cash value!

Ideas and tips on which mortgage to use when purchasing a home:

First, consider different factors such as your current financial status, how many years do you plan to be in your home, how will purchasing a home effect your financial situation and perhaps if you currently are an owner can you adjust to a changing mortgage. There are fixed mortgage rates and adjustable mortgage rates. If you decide on a fixed rate for 15 years your payment is higher but over time your interest will be low. An adjustable loan gets you into a loan with a low monthly payment but will change with the times of the interest rates. So, some things to consider when you purchase your house.

How's your credit?

The first consideration to buying a new home, condo or town home is your credit standing. Lenders will check the value of your credit by running a report to see if you have a good standing credit history. A very key importance in purchasing a home first, second or even third time is to have good credit. There are ways to establish good credit. Having money in a savings account, having a steady income or at least 2 ½ years, paying your bills on time and keeping debts low are all considerations in good credit. Keep down the credit cards as low as you can.

There are different credit values to take into consideration here:

1. Are you able to repay the loan? Your financial obligations to dependents/alimony, your income and how long have you made this income.
2. Do you have a good history with making payments on time, how many times have you borrowed money?
3. Do you have any capital? Cash on hand, perhaps a gift from a family member.
4. Is the value of the home worth the investment?
5. Are you honest with your credit history and have good intentions on fixing any existing problems?

THE REAL ESTATE AGENT:

The real estate agent is the key person to help you in looking and negotiating the purchase of your new home. The agent will assist you in getting the right house, the lender, and property inspector, contractors and so on so on. Referrals are probably the best way to find an agent. Remember, you are doing the interviewing also. You want the real estate agent to be in your area so they will know more about the area of your home and the property value. Make sure you are finding a real estate agent in your price range. He/she will find a home in price range and the right property value.

MAKING THE RIGHT CHOICE WHEN PURCHASING A HOME:

There are several factors to make sure you choose the right home in purchasing your house. Why kind of area would you like to live in? Urban or suburban? Do you have children? What kind of schools is near? What type of home would you purchase? Newly built home, older home, town house, and condominium, something that needs a lot of repairs? Will you live in your new home that is complimenting to your lifestyle? Is the size of the home suitable for you and/or your family? If you take pride in your home you want to live in an area where others take pride in their homes and yards. That will keep the house value reasonable.