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First Time Home Buyers

Buying a home is one of the most significant financial commitments of a lifetime.

For the first-time homebuyer, information and assistance is available from a variety of sources. There are many factors to consider – from securing financing to making an offer – but perhaps none is as important as picking out the perfect place to call home.

How Much Home Can You Afford?

The first step in determining your price range is visiting with a lender to get pre-qualified or pre-approved for a loan.

Finding A Home: Keep the following in mind:

• Single-family home means a detached home that sits on its own lot. Privacy is an attractive characteristic of these homes, which often have fenced back yards. On the other hand, you’ll have more maintenance than with other home types.
• Condos are individually owned homes attached to one another in a building (like apartments). In most condo buildings, the owners of the individual units form an association that owns and controls the building, arranges for most building maintenance, determines monthly assessment fees and sets rules and regulations for the homeowners.
• Townhouses are one, two or three stories tall, and sometimes come with attached garages. Also called townhomes, they combine the privacy of a single-family home with the benefits of condominium building’s maintenance, which is usually handled by the homeowners’ association.

What To Look For In The Local Area

While the proximity of public transportation or the quality of local schools may not be important to you, those criteria could be a dealmaker to a prospective buyer when you want to sell your home.

Take a walk or bike ride through the area and search local blogs and websites to learn about:

• Maintenance of homes—the pride of homeownership by residents is a sign that the neighborhood is stable.
• Conditions of sidewalks, paved streets, alleys and storm-sewer systems.
• School test scores, student-teacher ratios, average class size and special-education classes.
• Evening traffic conditions, availability of street parking and street lighting.
• Local projects, ordinances and redevelopment plans.
• Convenience of public transportation—with today’s high fuel costs, hopping on a commuter train, metro rail or bus to work may be an important option.
• Programs, amenities and activities offered at local parks, especially if you live an active lifestyle.
• Crime statistics and information on registered sex offenders in the community.

Also, consider talking to local shop and business owners, who may offer a different perspective about the area than homeowners.

Working With A Real Estate Agent

Though some people may think of using the services of an agent only when selling a home, an agent can be invaluable when buying a home property too. When choosing a real estate professional to act as your buyer’s agent, proceed as you would in selecting any professional such as an accountant, attorney or doctor. One of the best ways to find an agent is through recommendations from friends or relatives. Ask any potential agent for references and check them thoroughly.

For more information and steps for first time homebuyers please visit www.hud.gov