Great information for first time home buyers. For more information on debt relief and debt consolidation go to www.Delraycc.com

Firstly, you may need to repair your credit profile if it may have been damaged so that you are more appealing to home and mortgage lenders; secondly discovering a potential home seller that has common financial interests also helps greatly.

But after this, one of the most important questions is whether you have the necessary income to maintain the house after it has been purchased.

Before you buy your first home you should determine if you can afford the house.

If you begin viewing homes and find a desirable one, then when it comes time to look at your finances, you may think that there is no possible way you can afford it.

This may almost be a crushing emotional blow but you should not be discouraged.

Often there is another avenue that you may not have considered and instead of becoming sad about the initial bad feelings you should try again.

At this point, many potential first home buyers simply give up and think that it can’t be done for them.

But before totally abandoning the possibility of buying that first house, here are some points you should consider prior to concluding that house is not possible for you.

You may be surprised at how these small suggestions can help you in big ways.

One of the first things always suggested is creating a budget. Virtually no one likes to set a budget, but you should seriously consider doing this.

This will determine the money coming in and what you are paying out for daily living expenses and bills.

You need to know the amount of money you have to make payments on a home. Keep in mind that this number may include what you already pay in rent.

This will determine to a significant degree what you can afford when you decide to buy a house of any form.

One almost easy part of assessing your budget is to track your monthly bills and income. Generally, these are similar each month.

The hardest part of the budget tracking involves what you spend at any store and this includes purchases for items bought over the Internet.

You can use software programs to track your debit and credit card transactions or record them manually, but either way, it effectively makes it easier to find out where you are spending your money.

If you use credit cards to make purchases, you should track how much you are spending each month.

Is it greater or less than your potential monthly payment? The most difficult part of your budget is to assess cash based transactions.

You should retain all of your receipts or otherwise you won’t know where the money goes. Do this for one month and save all your receipts.

Once you have them in hand and review them, you may be quite surprised at how much you actually spend. After this, decide what items can be eliminated or reduced to allow for savings.

A home budget analyzer is a valuable tool that is virtually necessary.

This can be done using a simple spreadsheet and does not take much time to update every other day or even weekly.

Once you have this information in hand, the potential lenders you may encounter will appreciate this and be more receptive in you having prepared yourself.

Most potential lenders may only wish to know if you have sufficient funds for a down payment and can afford the initial series of mortgage payments.

Once they are satisfied with this, the remaining financial obligations are left to you.

An additional spreadsheet or personal financial profile will help in providing them with information about your personal assets and liabilities.

But this is not enough, because you must be weary that if they are providing you with the best deal, or simply attempting to earn their commssion.

The competition for your money is intense and you should not think that for even a moment that that they are attempting to do you a favor.

Rather, they want you money and may even provide you with a new Microwave Oven as a bonus.

So look around for a good rate or repair the credit rating you have before venturing into buying that first home or condominium.

In the not so distant past getting a free toaster was considered  acceptable, and for now at a bare minimum, a better interest rate is far more desirable.

Are Credit Scores Reliable Bases for Home Mortgage Loans?

Credit scores may already be obsolete and irrelevant as basis for evaluating people who are applying for home mortgage loans.

Purchasing your first home can be very exciting and yet at the same time, be very frightening too. One of the first things that 1st time homebuyers are concerned about is how are they going to maintain their outstanding credit rating or how they will repair their credit rating once they purchase the home.

This is a great concern to the 1st time homebuyers because most of them do not have enough to buy the house upfront and as a result, they have to takeout a loan from a bank or some other financial institution for the mortgage.

The problem is with a combination of high interest rates, along with the typical living expenses as well as taxes; a lot of people are struggling in terms of keeping up with the bills.

The majority of 1st time homebuyers end up deep in debt and this is a serious issue for most of these people.

It’s true that one of the biggest causes of stress is financial debt.

Be Wise

Regardless of whether you have good credit to begin with or not, the last thing you want do is to worsen your credit rating. Here are a few important steps that you can take. The very first thing you should always consider is to live below your means.

Far too many people in society today are trying to keep up with the Jones.

Spending money on things they shouldn’t be buying or not having a tight rein on their budget. That being said, determine what your income is and how much of a mortgage your income will support.

Do not stretch yourself financially. Always remember there are additional costs when purchasing a home such as, renovations and repairs, as well as new furniture too.

Choose a Mortgage Type

Also as a new home buyer, you will have to decide if you want an open or closed mortgage. The advantage with an open mortgage is that you can repay the loan off any time during the term of the mortgage.

Even though you can pay off your mortgage faster with an open mortgage, the interest rates are generally higher with these mortgages. This is something you have to take into consideration.

With close mortgages, they have a longer, set term and limited prepayment options. When compared to an open mortgage, there is less flexibility, but at the same time you are gaining in terms of a lower interest rate.

As well, the rate will always remain the same so you don’t after worry about rising interest rates. Nothing is more stressful than to see your monthly payments go up sharply and unexpectedly.

Save Your Money

As an initial home buyer, it is wise to put down as much as you can as a down payment. The more that can put down on the property, the smaller the mortgage you will have to finance and the less anxiety you will experience.

It’s also a wise idea to try to save some money in the bank for emergency situations. With that extra money, you can also pay down the mortgage faster if the opportunity presents itself.

In addition to that interest rates on mortgages are low. This is still likely the biggest investment of your life and you don’t want to make a mistake. It can take between 30 to 90 days for the entire purchase process, although timelines vary according to individual buyer and seller circumstances.

Get a Pre-Approved Mortgage First

Most realtors will not show you homes unless you pre-qualify, so they know that you are serious about buying. Gather past 1040s, bank statements, credit account numbers and determine how much you have for a down payment.

Your realtor can give you a ballpark figure for the type of mortgage you will qualify and can steer you to a mortgage broker.

Once you get a pre-approval status from your lender of choice, they give you a Loan Status Report (LSR). You can then determine what price range of homes to consider.

If your lender pre-qualifies you for monthly payments you are not comfortable with, buy under that amount. You are the one that has to make that payment each month.

Start Looking at Homes Available for Purchase

Many people begin their search on the internet. You can save a lot of time by doing some research. Some people like to drive through their preferred neighborhood to see what is available.

Be careful of  ’For Sale by Owner’ properties, many of these owners have unrealistic expectations of the value of their property.

Once you have narrowed down your search, it is good to contact a realtor who can help you evaluate your choices and make an offer.

They will know what comparable properties in the area have actually sold for, not just the list price.

Make an Offer to Purchase

You submit a contract to the seller stating the amount you are offering along with the LSR so that they know you are serious. The seller may counter offer.

Once both the buyer and seller accept the offer both sides are obligated to follow through. It is always contingent on the buyer getting their loan. Your realtor will monitor the process until closing.

Money Down, Home Inspection and Appraisal

You must put down earnest money and then begin the application for the loan. There will be a home inspection which can be paid for by either the buyer or seller depending upon the terms agreed upon.

It is still possible to back out if the home inspection finds a problem that you and the seller can resolve. The lender requires an appraisal to make sure that the house has enough value to cover their loan should you default.

Once the lender gives final loan approval, you are ready for closing.

The Closing

You will get to have a final walk through to make sure everything is the same. Then a title company prepares all the documents for the signing of both parties. The title company oversees all the document signing and delivers the title to you, the new owner.

Move-in can be immediate or up 30 days depending on the agreed dates between buyer and seller.

Are Home Buyers Starting To Kick The Tires?

The $787 billion dollar economic stimulus plan becomes law today and includes an $8000 tax credit for first-time home buyers. The plan also includes tax credits for current homeowners that choose to make their homes more energy efficient.

Is It Smart to Buy a Home in This Recession?

Tips on saving and investing, dealing with debt, managing credit, and excelling in your career and your life.

First time home buyers are in the exciting position of both choosing a home and making one the biggest investments in life.  But are realtors necessary?  I hear this question a lot from first time homebuyers.

They wonder why they can’t just peruse open houses and visit new developments where realtors are just sitting there waiting.  Well, that opens the first can of worms for first time homebuyers.

Realtors usually work as either buyer’s agents or seller’s agents.  That friendly realtor at the open house only represents the interests of her clients (the sellers.)  That’s why I tell any first time homebuyer to team up with a professional realtor who knows the things that you don’t.

Tap Into Their Knowledge

Anybody can buy a house.  But all the unknowns typically overwhelm a first time homebuyer.  The great thing about working with a realtor is that you get an “instant guru” for all you questions from finding good schools, to how much less a seller might take, to “what is PMI again?”

Once you decide to work with a realtor, let them really work for you.  Realtors can eliminate many homes based your requirements, so that you spend less time looking at inappropriate ones.

List your desired amenities and priorities so that your realtor really knows what to look for.  Good realtors listen. You shouldn’t have to tell him 4 times that a second bathroom is a must or that you need a double car garage.

Where to Find Competent Realtors

Realtors are everywhere.  Ask for referrals from people you trust. Interview potential realtors before making up your mind. Ask about their background, client load, experience and availability.

Then grab you digital a camera and a notepad, call your chosen realtor, and have fun buying your first home.

The best realtors will honor your time schedule and when you are available to look at sites. Realtors can also give valuable information about movers, local amenities and things to do, even local doctors if you’re new to town.

Remember, in addition to having professional knowledge of the real estate game, your real estate agent will be familiar with the local area. Ask lots of questions, and expect lots of information in return.

You will find that the mountains of paperwork go more smoothly if a realtor guides you through the purchase agreement. The legalities of buying a home are enormous, but competent realtors make sure you don’t skip the inspection, or spend all your time driving around an area that’s out of your price range.

But what about the price range? One of the biggest concerns that new buyers have about hiring realtors is paying the commission. After all, is it really worth it to pay realtors when you could have that money available for your new home?

Weigh this decision carefully. Don’t nickel and dime yourself out of competent advice. Especially if you have never navigated the paperwork and legalities of a real estate transaction, one of your smartest moves can be to include a realtor on your house hunting team.

First Time Home Buyer Tax Credit

A tax credit for first time home buyers is part of the Housing and Economic Recovery Act of 2008. The maximum amount of $7500 is a one-time-only tax credit, so it reduces your tax bill or adds to your refund dollar for dollar.

Tax Credit for First Time Home Buyers

Did you know that you may be eligible for the First-Time Home Buyer Tax Credit that is part of the Housing and Economic Recovery Act of 2008. This tax credit is designed to encourage first-time home buyers to purchase their first homes.

First Time Home Buyer Advice

In one information packed hour, you will learn If you should buy a home or rent (buying a home is not appropriate for everyone’s lifestyle). If you qualify to buy a home, what price you qualify for How much money, if any.

This brief mortgage minute video is addressed mostly to first time home buyers and answers the question “Should you buy a home that is being sold short?” This occurs when the owner owes more to the lender of the mortgage than the actual appraised value of the home.

As an example, consider a home you are interested in as a new home buyer that is listed at $150,000. However, the present owner owes almost $200,000 to the mortgage provider (e.g. a bank). Before you can purchase the house, aside from you, both the bank and the seller must agree with selling the home short, or at a loss.

Ever wonder what is the average square footage size of a home purchased by first time home buyers? This quick video answers this question.

A first time home buyer should have a checklist that includes obtaining a credit report, gathering income documentation, finding a mortgage broker and identifying a loan scenario.

Find a Realtor that has worked with first time buyers using advice from a mortgage specialist in this free video on real estate. Expert: Stetson Lowe Contact: stetsonlowe.typepad.com Bio: Stetson Lowe is a credit repair expert. Known as the “mortgage insider,” Lowe assists increasing credit scores for the most challenging of clients. Filmmaker: Paul Kersey

I went to grants.gov as well as HUD sites and Homes and Community sites. They are all very hard to navigate and I really haven’t got anywhere after hours spent online.

Does anyone out there know of sites or better yet phone numbers I could call? Any help will be greatly appreciated!

I recently went to a NGC (National Grants Conference) and I wasn’t comfortable giving them a thousand dollars just to give me information on how to get a government grant.

I know this is not an easy process, but I just want to know what would be the best way for me to find a grant that would be right for me and the best way to get that grant for a first time home buyer?

Any suggestions would be great, thank you.

realestatemarketingthisweek.com – $8,000 tax credit for first time home buyers with low down payment – Part 3 – We have back in the studio today Mr. Dan Havey.

Dan and I have worked together in the mortgage industry for about 14 years and we are happy to have him back. He has seen a lot of changes in the market and thanks again for being here.

Michael, here is a question I wanted to ask you, there is so much misconception in the marketplace today as far as what is still available for financing. I think a lot of people have this idea that it is impossible to finance a loan or get a mortgage or that you have to be able to put 20% down or have a 720 FICO score.

Can you let people know whats really going on out there? Well you know a lot of things have gone away. There are a lot of those old loan programs that were fancy ways to sell money and finance real property and a lot of thats gone.

The reality of it is, if a person has a minimal amount of money down, there is absolutely financing through the Federal Housing Administration with 3.5% down. You can buy up to about 8000 with only 3.5% down.

Now with Fannie Mae and Freddie Mac, we actually do have a few investors that will allow us to only put 5% down with those and that loan amount maximum is 7000. So there is still plenty of financing for primary residences.

Thanks in advance for all helpful advice.

Are there grants available to help with the down payment, or just with buying a house in general?  What about tax rebates?  I know the big one already ended this past April, but are there plans for any new ones?

Thank you in advance for any helpful advice!

Bottom line is, what do you wish YOU had known before you had signed on the bottom dotted line?

Thanks in advance.

I live in Philadelphia county, and that is where I will be looking.

Thanks in advance for any helpful advice.