When someone is buying real estate for the first time, they cannot help but be excited. They are finally getting the opportunity to stop paying rent. For the first time, they will be able to actually earn equity in a property. That excitement can sometimes blur the process for home buyers. First time home buyers need to know what to look for so they can be prepared when they enter the home buying market.
The FHA Loan
If you qualify for an FHA loan, you will not have to pay as high of a down payment as other loans. Also, because the loan is guaranteed by the government, you can also get a lower interest rate. This is a good option for those who are purchasing a home for the first time.
Another benefit on an FHA loan is closing costs can be lumped in with the loan, which means that you will not have to worry about upfront costs nearly as much as you would with a traditional loan. There are still things to keep in mind, though, even if you use the money saving method of getting an FHA loan for your Orem real estate.
Don't Get More than You Can Afford
When you are looking at Orem real estate, you will find a wide variety of prices. That means that you can find something within your budget in Orem. However, make sure that you do not go over that budget when looking around. That could end up being a very big problem for you.
Be Ready for the Future
If you are looking to buy for the first time, you might want to take the future into consideration. If you are looking at Orem real estate you can live in for a long time, assess what your needs might be a few years down the road. Are you going to have children? If so, make sure you purchase an Orem home that will accommodate more people. Also, you might want to find one that has a large backyard. These are things to think of so you will not have to move in the near future if you add to your family.
Buying Orem real estate for the first time is very exciting. When you think the process through, you can get the perfect home that you will be able to stay in for many years to come. Compare different properties so you are able to find the Orem real estate that is best for you so you will be able to get the most out of your purchase.
There are just some things in life that are a recipe for disaster and going shopping without money in your pocket is one of them. You are almost guaranteed to find something to buy that you absolutely fall in love with: Shoes, clothing, handbags, sportswear, cars, gadgets and whatever else manages to get your greed-glands working overtime!
So why, oh why, would we put ourselves through this same kind of masochistic torture when buying our dream home? It's madness enough when buying "small ticket" items but a house (or flat), are we really that crazy? Well, yes. We still do it. "FTB Excitement" takes over the very best of us.
But it doesn't take much for the euphoria to disappear and to make way for something else. You see, the First-Time Buyer (FTB) is just so excited at the prospect of owning a little piece of land and home to call their own. Unlike the seasoned, more cynical, home buyer, it understandably takes fewer viewings for a FTB to lay eyes on the place that is "the one for them". They just know it. They can see it, feel it, touch it, taste it.
Nevertheless, you can still guess what the FTB has gone and done, can't you? Oh yes, they've committed mortal home-buying sin number one:
"Thou shalt not go looking for a home until you have a Mortgage in Principle because you WILL fall in love with something. GUARANTEED!"
And that is when the "Curse of the First-Time Buyer" descends upon them! That property, their dream home for £165,500, has been sent to test them. Lenders have all stood around their moneypots and decreed not to lend them any more than £150,000. Oh yes ... the curse has fallen upon another unsuspecting FTB !
As bizarre as all of this sounds, there really is no need for any First-Time Buyer to put themselves through the pain and torment of finding a house or flat that they love without having the money in their pocket first. (Or as close as you can be to having the money that is.)
Have a mortgage agreed in principle before you start your house-finding journey. Get it in writing. Get a bank, building society or mortgage adviser to produce a Key Facts Illustratration (KFI) for you. Using one of those "How much can I borrow?" website forms is insufficient. Asking for just your annual salary and the property's value is literally scratching the surface. You need something far stronger than that to bargain with.
And there's no need to worry : you're not making a full-blown application for a mortgage. That's why it's called "Key Facts" because it's only the information that both you and the lender need to know at this stage in your relationship.
According to the FSA's "Mortgage Conduct of Business" book, this is how you can avoid the "FTB Curse". (Well, they don't quite mention the curse but you know what we mean!)
"The principle [of providing an Illustration] is that the customer should make an informed decision to apply for a regulated mortgage contract. This means that he must be given sufficient information, specific to his case, to be able to make that decision."
If you or someone you know are seriously in the marketplace for your first home, then go and get your illustration now. They can be produced quickly enough by a reputable adviser. More than anything else, though, you know you are in the strongest possible position to negotiate with the Seller. You've gone shopping with money in your pocket!
Both Art Gib & Mark Matheson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Art Gib has sinced written about articles on various topics from Supplements, Teachers and self improvement and motivation. Art Gib is a freelance writer for PayneSmootGroup.com (), a website featuri. Art Gib's top article generates over 1830000 views. to your Favourites.
Mark Matheson has sinced written about articles on various topics from Real Estate, Home Businesses. Mark Matheson MSc is a partner at , a UK company specialising in Secured Loans and remortgage information. (Find out more at their. Mark Matheson's top article generates over 590 views. to your Favourites.