Helping First Time Home Buyers To Get Their Home Sweet Home

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First time home buyers often lack the experience and knowledge needed when it comes to real estate transactions. Let this article be your guide when it comes to deciding whether owning your own home is the right decision for you and if it is, how to go about buying your own home.

The first step is to organize yourself - get your paperwork in order. It is a good idea to use the resources that are available to find out more about purchasing real estate so you can make more informed decisions.

When deciding to buy a home, you need to decide why you want to buy a home. Decide whether you want a home or need a home. Since owning a home is a long term commitment, it would not be a wise idea to purchase unless you are settled in your career and don't expect to move within the next 2-5 years. If you expect to have a change of career that is going to take you away from home, it is best to rent.

Your financial commitment should be a big consideration. Although many lenders offer a 0-5% down deal on your closing costs and therefore allow you to close with little or even no money down, you still need to be able to carry the monthly mortgage and your bills. Your mortgage should not exceed 1/3 of your gross income.

Purchasing a home might give you a tax break. You can deduct the interest you pay on your mortgage and the mortgage insurance and taxes on property. Your tax accountant will tell you how buying a home will benefit you.

Ask lots of questions and keep yourself informed. Your instincts will give you a good idea as to whether purchasing a home is a good idea. Real estate agents often pressurize first time home buyers to move fast. If you feel pressured and you like the home, take a rent to buy option whereby you can rent the property first for a few months to learn more about the area.

Keep a home-purchase file in which you keep all your records, including the purchase contract if you have already found a suitable property, your pay stub, tax returns, and debt payment information. You will also want a list of phone numbers for realtors, attorneys, etc.

Important information to collect includes real estate listing sheets, inspection reports and insurance information. Inspection reports are obtained from a property inspector who can find hidden defects, including structural and foundational defects. This may save you thousands of dollars. Although a condo's exterior is covered by blanket insurance with the association, you will need to get insurance on the interior structure, as well as the personal belongings.

You can apply for a pre-qualification or pre-approval letter by submitting your information to the bank. If you are approved, you will receive a pre-approval letter, which you can take to the realtors. This pre-approval letter gives you negotiation power when you submit an offer to purchase.

The rest of the process is as normal for Georgia first time home buyers. Once you have all of this in place, it's a matter of finding a realtor you trust, finding a property you like and submitting an offer. Once you have submitted your offer, you have to arrange the Georgia bank mortgage on the property and when that is approved, you will be able to get the keys and move in to your new home.

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