1st Time Buyer

Anyone with a steady income and a good credit rating can purchase a home today. You no longer need a large down payment like our parents did.

It's a good idea to have some money put away so that you can show a mortgagor that you're responsible, and make sure you have a couple of bills (say, a car payment and one credit card) that you pay on regularly. Don't overextend yourself on credit obviously, but no credit is a negative, just like bad credit.

A good employment record is good too, but you don't have to stay with one employer for years and years either. As long as you don't have any big gaps in your employment history or go bouncing around every few months, you will be fine.

Once you are really serious about looking for that first home, don't run up the credit card accounts the last few months before.

Have you checked out the AmeriDream website. They have classes that, if you take them and pass, will help with down payment assistance. I took classes in my area and passed. Now we just have to get our credit in order so that we can buy a house. Here are a few links.

www.ameridream.org
www.fha.com

First of all, congratulations on having your finances in order enough to consider getting a house at such a young age. There are a couple of things I can reccomend.

As far as your downpayment is concerned, the webiste that the previous poster mention wehre you take classes and they help you with financing and payments is an amazing resource. Depending on where you live, the fact that you took the class can help you get a lower interest rate. The classes work with some banksto give you a lower interest rate, so be sure to ask your lender about it.

Second, check around for pre-approval options. There are obviously thousands of companies that would like to give a you a loan and have you pay them monthly. There are several online companies as well. Be sure to check whichever companies interest you against the BBB(Better Business Bureau) list, so you know you are not being screwed.

Almost done...

Once you find the home you want, get a private inspector. They are fairly expensive, like at least 1,000 usually around 2500-3000. Beleive me, it will pay off to have your own inspection done, even if one comes with the house closing. Be sure to check if there is one included in the house closing, if you get to pick who does the inspection, they you dont need to worry. If the homeowner chooses, you need to stipulate that you wold like an inspector of your choosing to go through the house, even if it's at your expense.

If there are major damamges to the house that are going to cost an arm and a leg to repair, you want to know before you sign the contract.

Thats about all I can think of at the moment. Now is the best time to buy with interest rates low and so many houses on the market. Good luck and Congratulations.

Hi pumpkin, we just found a house of our own and are now getting for the inspection part. I think the most important part of buying a home is to "PLEASE" save save save "before" you begin the process of looking and yes by all means take a class or two but most of all you must always have some money in reserve for all those suprise expences that can and will come up. even with a good income to pay the morgage remember taxes, heating, electric bills,Insurance to name just a few, and also take into consideration your personal expences all of which will be coming out of "Your" check each month. Remember sugar the name of the game is not just buying your Dream home, "It's keeping it once you've got it" There are too many folks who move too fast in buying homes without taking the time to THINK AHEAD and wind up losing their dream homes. I know that won't happen to you because you're gonna stay ahead of the game and stack that money for a few years before you go looking right?......"You Go Girl"

The best thing you can do to prepare is keep your credit in good standing, you will get better loans that way. Don't buy more house than you can afford. When figuring out your mortage payments make sure you factor in money for taxes, insurance, and living expenses, buy a mortgage for a little bit less than you think you can afford, that way you will always be comfortable.

Find out what your property taxes will cost you. They will be added in to your monthly amount you need to own the home. Pay them yourself every six months rather than have them added in to your mortgage, that way you can keep the money in the bank and collect the interest, rather than the mortage company taking it. But do make sure that you divide the property taxes by 12 months and make sure to put that monthly mortgage tax amount away each month. We have certain account that is used just for desposting our monthly real estate tax amount in, and we write 2 checks out of it a year, both of them to the village for taxes. Of course this is an interet bearing account.

Start saving some money for a down payment, although as a first time home buyer you will be eligible for an FHA loan where you will not need to put as much down you will still need a certain amount.

Hope this helps, you are wise to start planning ahead.