First-Time Home Buyer Money Saving Tips

If you missed out on the tax credit, you can still save thousands of dollars.  Here are some tips to help you.

1.  Buy for the long term:  The basic idea for buying a home is for real propety ownership and gradual long-term return in investment.  Most successful people find out the real money is made in real estate by holding not selling.  If you sell in a short time after buying, even if the property appreciates, the transaction costs from buying and then selling are going to take a big hit on any gain.

2.  Work on your credit:  You are likely to get a purchase loan to buy a home.  Start by getting a copy of your credt report.  You might find there was a problem in the past.  If you had any late payments or it was reported incorrectly, you can make arrangements to fix any problem and improve your credit score.  While shopping for a loan make sure you don’t allow them to run a credit report or make a financed purchase since these can lower your score or lower you qualification.

3.  Points or rate can make a difference:  When picking a loan, you can have the option of paying additional points, a portion you pay at closing, in exchange for a lower interest rate.  If you plan to stay in the home for a long time, it’s better to pay the points.  The lower interest rate will save you more in the long run.

4.  Hire a home inspector:  A home inspector can let you know if the home you are buying  is in good shape or if there migh be some potential problems that need to be taken care of.  It might turn out you’re getting a good price on a home but with the unforseen cost of repairs needed for the home, that good deal might turn into a over priced home.  If a lot of problems are found, you may decide not to go through with the purchase or renegotiate the price with the seller.

5.  Get professional help:  The great thing about looking for a home nowdays is most every home for sale is on the internet.  Buyers can search forever to find the home they want.  But it takes more than just finding the right home,  you want to get as much information about the home and the area as you can.  A professional agent can help get the necessary information to make the right decision as well as help with the strategies in the bidding process.  Finding the home is easy, getting it is tough all the way to the end.  Get someone to make it seem easy.

6.  Additional comment:  Buying a home is one of the largest personal investments people will make.  The first time is one of most important events in ones lifetime and unattainable to many people in other countries.  Make it enjoyable, not stressful.  Another reason to work with a qualified real estate professional.

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