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Buying a home?? Follow these tips to ensure a memorable experience:

Buying a home is a huge step. It is the most sought after and cherished American dream. The entire home buying process is a very challenging process. However, at the end of it all, there lingers a great feeling about a home that you call your own. It can be pretty scary, in case you are a first time buyer. You might not know what to expect from the situation. So how to go about home- hunting? Here are a few tips to guide you towards your most cherished dream.

1. Have an idea about the amount of money that you can afford to spend on a home buying. Looking closely at your monthly income and expenditure is a good idea to have a proper insight about your affordability.

2. These days, getting into debts is pretty easy. When you are applying for a mortgage loan, be sure that the mortgage lenders would review your credit report minutely. If you have a huge debt on your credit card, your credit scores might have been damaged. While buying a house, if you have lots of debts on your credit card, it will become more difficult to afford a house. If you have had any credit related problems in the past, you would have to pay the higher rate of interest. This will eventually increase your monthly payments. So, it would be a wise idea to go for debt settlement before going for house hunting.

3. While searching for homes, carry with yourself, a pen and a writing pad. Take notes of designs, any particular feature that you liked in a house. Note down the surroundings of the home, location etc.

4. Since, buying a home is an investment, invest wisely. Home value depends on the economic conditions. It may fluctuate with the ups & downs of the economy.
5. Still, it will be wise to know the estimation of the worth of the home in future.

6. Talk to several mortgage lenders. Compare costs and interest rates; negotiate with the seller, to get a better deal. Get yourself a pre-approved loan.

7. Since, you are a first time buyer, keep in mind the home owners insurance and taxes while calculating the monthly expenses for a home mortgage loan repayment. Remember that sometimes, the taxes can be double the amount of mortgage value.

8. The details regarding a home buying can be mind boggling sometimes. A very good idea is to use a real estate broker. Being a professional, he can guide you through the process of home buying, thereby making the experience a lot easier on you. He will be able to guide you through all the important things like the affordable price range, the safety etc, that you need to consider before buying a home. This will save you money as well as your precious time, as you would not need to drive around the town for house-hunting. When you zero-in on a particular house, the broker can make deals with the seller, to save you money. He would be able to explain you the pros and cons of different types of mortgages, answer all your queries and guide you through the complicated paper works. The most amazing part is that you don’t have to pay the broker any money at all! The payment to the broker is to be made by the home seller.

9. Finally, have patience. Finding a perfect home to fit your family’s requirement may need some time.

As mentioned at the beginning of the article, buying a home for the first time can be a scary experience, unless you follow the proper approach. Be honest about your affordability, research amply and then commit for a home loan. If you follow the right steps, I am sure, the process of buying and eventually moving into your dream home would be a memorable one.

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April 13th, 2010 | Tags: , , , , , , , , | Category: Uncategorized | Comments are closed

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