Best First Time Home Buyers TipsIf you're a first time home buyer, you may really need some good first time home buyers tips on how to proceed. Lenders will offer you "teaser" rates on the radio and in the newspaper, then sucker you in to a much higher rate. Your friends and family will put on display their dense economic and financial ignorance as they tell you to look into balloon loans or wait, wait for housing prices to fall just a LITTLE BIT more. There are sound homebuyers tips you can follow to lift yourself above the noise and allow yourself to think clearly. 
And when you're going to sign those stack of papers, it is exceedingly important to think clearing. Especially for your financial well-being and future peace of mind. Important first time home buyers tips Tip #1 Know what you qualify for before you actually try to qualify. If you are not absolutely certain about your credit rating, what your income qualifies you for, etc, then you should go through a pre-qualification process. You will need a very recent copy of your credit report, documented proof of income (if you are self-employed this can be hard for you to provide and you may have to get a special loan), tax returns for the last two years, and copies of recurring monthly payment statements like electricity, propane, car loans, etc. If you rent right now you should have rent payment receipts, too. It's best if you have two years' worth of these, but as long as you show sustained payments over time that should be good. You can also use my mortgage calculators if you want to estimate this yourself. Keep in mind though, it doesn't cost anything to get pre-qualified and they'll do all the work for you. Note: Don't go with anyone who wants you to pay for a fee to get pre-qualified. They may not be interested in you, just in the fee!!! Tip #2 If you can't qualify for what you want because of your credit history, you probably should wait and do things in the meantime to raise your credit score. This includes paying down or paying off your credit cards, getting caught up on your delinquent bills, and the like. Note: Many people don't realize that going into credit management can harm your credit in the eyes of lenders. They don't like to see that because it suggests that you can't manage your finances well. So try to do everything on your own. I have some first time home buyers tips on doing your own credit repair. Tip #3 Don't hesitate to buy the house you want when you can qualify. But, if you just don't feel that getting your own home is "urgent" right now there's no problem with waiting. Although the market is really good right now. Sometimes though lower prices mean more people competing for the same house and lenders raising interest rates to weed out those with weak interest or weak repayment capability. If you fit the weak repayment capability, then it might be a good idea to wait and improve your credit history. It's worth the time so you can get the best price and the best rate. Tip #4 If you don't have at least 20% of the purchase price for the down payment, see about special first time buyer loan programs like FHA. Also check out state or federal grants that are designed to help people like you. Tip #5 Use a real estate broker to help you find the right house in an area. He gets paid by sellers of homes--not by you. Use these first time home buyers tips to make your experience a positive and prosperous one. If you would like to leave Best First Time Home Buyers Tips and return to our First Time Home Buyer Guides main page, click here. Or return to First Time Home Buyers home page.
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