Mortgage Rate News

Last September, I closed on my first home. As a first time home buyer, there were lots of things that I learned on the fly. And, happily, several things I already knew. Over at Get Rich Slowly, there are some tips that can help first (or any other) time home buyers choose the right home for them:

1. Location. You’ve heard the saying, “Location, location, location!” Well, it’s true. You should consider location. My husband and I wanted to buy a home that was located close enough to public transportation, yet not in a busy part of town. We also wanted easy access to town. We managed to fulfill those requirements. And with the price of gas, we are glad we did. You should also consider the neighborhood. Will the resale value be there? Is it a place you want to raise your kids?
2. Budget. Take a look at your budget. Can you afford the mortgage payments? There are mortgage calculators that can help you get a ballpark figure on monthly mortgage payments. Don’t try to make the mortgage “fit” into your budget. If you can’t afford the mortgage payments, move on. And don’t be house poor. If the mortgage payments will mean you can’t do other things you’d like, reconsider.
3. Know the market. Will you be able to negotiate on price? Does the price seem a little high? Look at different home prices, and check public records to see how much homes are selling for in the area.
4. Don’t trust your real estate agent. We had a great agent. But we did a great deal of the homework ourselves. The fact that the agent is getting commission immediately means there is a conflict of interest. An agent can be helpful, but don’t believe everything he or she says.
5. Avoid trying to “time the market.” Don’t make a decision too fast or too slow. If you find a house you like, that you can afford, don’t wait for things to fall just a bit further. If you can’t find something that fits your needs, don’t rush into something because you’re afraid you’ll miss out on a great deal. Your decision should be made when you find something that works for you.

There are more tips, but we will cover them tomorrow.Tags: mortgage payments, buying a home, home mortgage loan, mortgage loan blog,first time home buyers, house poor