Buying Your First Home

For most people in American it's a dream come true to own a home. Not only do you have a sense of accomplishment it also improves your personal finances as you build equity in the property. Instead of paying monthly rent (which helps your landlord), you will be building wealth by investing in a home. Purchasing the first home can be a challenging process and you can get help from various mortgage lenders throughout the country.

Obtain pre-approval prior to searching for a home:

Take few minutes to obtain pre-approved mortgage before searching for a home. A first time home buyer is not likely to have the knowledge a seasoned homeowner will have so its important you work with a well respected and knowledgable loan officer. 

And when you've located a loan officer you can trust you can then look into getting a pre-approval for your home purchase. The loan officer will check your credit, review your income documentation, and verify your liquid assets to identify the maximum eligible amount you will qualify for. 

It's super important that you are honest and upfront with your loan officer otherwise there will be significant problems down the road.

With a pre-approval in hand you are able to start your home search. Before you start be sure to discuss the current market for mortgage rates and ask the loan officer what his/her expectation is for mortgage rates over the next few months.

Having the pre-approval in hand will save you countless hours of time since you will be able to narrow down your search from available homes within your budget. What will surprise you is the availability of various loan options to ensure you're able to purchase the home you desire.

Steps involved in purchasing first home:

Here are a few steps to follow when purchasing a home:

· Obtain a full pre-approval allowing lender to review your income, credit report and asset documentation. A limited pre-approval will not cut it.

· Before you check out home be sure to hire the best real estate agent who knows the local area. One who can help write an offer, and provide assistance with details to complete home purchase.

· Check out homes for sales in person until you come across one that is within your budget.

· Submit offers and when one is accepted inspect the home thoroughly. If there is a repair and it's deemed essential, submit request to seller to make necessary repairs.

· Contact an insurance company to arrange for your homeowner's insurance policy.

· Before closing complete walk-through and ensure the home is in the condition you are expecting.

Choosing the most appropriate home loan:

There are available varieties of home loans including adjustable-rate mortgages, fixed-rate mortgages, government-insured mortgage & 15/30 year mortgages. Also decide whether to pay points on mortgage or not to reduce interest rate.