Many people opt to rent a home instead of buying, thinking that it is easier than having to pay a mortgage each month. Yet paying rent money to a landlord each month is virtually the same thing, with the only difference being that you are lining their pocket instead of your own. Each time you pay your mortgage, you can think of it as buying yet another small corner or tile of your home, and getting one step closer to owning it each time. (more…)

Have you been tempted to buy a foreclosed home? Have you been looking at the prices of homes up for foreclosure in your area but are not quite sure how to find out more about them? There are three main ways in which you can buy a foreclosed home, each with distinct advantages and disadvantages. You will need to look into the procedure carefully and decide which is the best way for you. (more…)

Have you decided that you want to buy a home within the next year or so? Are you tired of renting somewhere to live and have decided that it is time to settle down? Although it may be a few months before you are ready to buy a home, there are many things that you can do to prepare yourself for the big day. (more…)

Are you thinking about re-mortgaging your home? Re-mortgaging is when you switch your outstanding mortgage to another deal, and this can be done for a variety of reasons. Many people switch over because it may work out cheaper after an introductory offer expires, and others re-mortgage to free up some of their equity. (more…)

Deciding to buy your first home can be very exciting, as you imagine how you can decorate your hideaway in exactly the way that you want. You may already know how much you can afford to pay for a house, and may think that the only thing now is to find a place that you like in a good neighbourhood. There are however a considerable amount of other factors that you will need to consider when buying your first home. (more…)

Have you ever wondered what your credit rating is, and just why it is so important? Your credit rating can be vital for getting a loan or a mortgage, and will affect how much lenders will be willing to loan you. You may never have considered the importance of credit scores, but if you are planning on investing in a home, it is high time that you did. It is never too late to start working on your credit ratings, and there are many simple ways that you can better your score. (more…)

With the ongoing housing crisis, many people are not sure whether it is a wise idea to buy or not. There are many conflicting views being voiced across the media, with some people saying that it is a great time for first time buyers, and other people saying that it is not. Who should you listen to? If you have been considering buying your first home then you should start to think about your options carefully. You may think that it is wise to wait and see if the falling house prices keep declining, but this is not always the case. Although you may get a bargain price on a home if you wait, your financing may get more expensive. Some media sources are saying that interest rates will increase heavily by next year, which could mean that you are better off buying now. (more…)

Have you decided that it is the right time for you to invest in a new home? Buying a house is an important decision that should bring you joy for years to come. House hunting can be both fun and exciting as you peruse different websites and visit different real estate agents to find your dream home. Before you start house hunting, a good idea would be to get yourself pre-approved for a mortgage. This will give you an idea of how much you can afford to spend on a house, and will avoid a lot of disappointment in the long run. (more…)

If you are a first time home buyer, the first thing you are going to have to think about is financing. Should you go through your bank? Through a credit union? What other options are available?

Loans:

The first place you should call is your bank. They will be able to tell you what they have to offer and today’s rates. Many banks will over you a reduced rate if you are a current customer and choose direct withdrawl for your payment.

Afterwards, call around. Call various banks and credit unions. Find out from the credit union if you get a reduced rate if you are a member.

Alternate places to get loans: HUD, Veterans Affairs (if you are a military veteran), or sometimes a personal loan.

Grants:

HUD - Meet with your local HUD office. Many HUD offices offer Grants to cover your PMI and a percentage of your down payment. These grants are not always financial need based.

Grants.gov - Excellent source for all government grants available for first time home buyers.

State grants - many states offer first time home owners grants. Most of these are to help pay towards your down payment to avoid PMI payments.

Remember, if it is a grant, you do not need to pay the funds back.

Your Realtor and your financing officer may or may not know about these options, so do your own research online.

If you listen to people in real estate, there is a time to buy and a time to sell. You buy when interest rates are low, sell when your home value is at its highest to get a good ROI. When is the best time for YOU to buy? This may not be determined by the market at all.

If you are not sure buying a home is for you consider the following:

1. Is buying cheaper than renting in your area? Include all costs like insurance, PMI. etc.
2. Are you okay with living in one place for more than 5 years?
3. Is your job secure?
4. Do you have enough money to put a down payment?
5. How is your credit score, debit to credit ratio? The higher your score the better the chance you will not only get the loan, but get a super low rate.

You think the above looks okay, your credit score is good and you are ready to move ahead. If not, here are some tips to get you to that point:

1. No savings? Open an account have have a portion of your income deposited into your savings account automatically.
2. Low credit score? Get a secure CD loan. You use your own money to secure the loan and only pay the interest. Pay paying the loan off in the amount of time listed, you will quickly raise your credit score.

Once you have most of the above done, meet with a personal banker. They will help you assess your current situation as well as tell you what loans they have available,. If you are first time home buyer or low income, there are grants available to help you make your first purchase.