Make sure you can afford it

Before you start the search for your new home, make sure that you can get pre-approved for a mortgage. Make an appointment to talk to a mortgage specialist. There’s no sense in starting to look if you can’t afford to buy a house. Getting pre-approved will also give you a ballpark figure to work with when looking.

Do up a budget first

Before buying your home, do up a budget including all expenses associated with owning a home. Some of these are heat, lights, sewage, water, property taxes and parking. The last thing you want to do is have your home end up one of the many foreclosed homes across the country because you miscalculated your monthly costs.

Be realistic

Every potential home owner has a wish list of things they want in their dream home. For most of us, this wish list is not only too expensive, but also highly unrealistic. While a Jacuzzi bathroom and wine cellar may be nice, they may not be possible. Before you start looking at listings, come up with your wish list and then narrow it down to a would be nice list then narrow that down to a need list. If you start off realistically knowing what you need in a house you can save yourself a lot of time and effort not to mention heartache when searching for your home.

Find a great real estate agent

While you can look for your new home on your own, having a real estate agent at your disposal can speed the process up. Plus, agents get access to listings immediately, a lot of the time before they are even technically listing. They have more time to dedicate to finding you the house that you want. After all, it’s their job. They also have access to REO properties, which are quite often a steal.

Know your terminology

There’s is a lot of financial terminology associated with buying a home. Mortgage, escrow, leans, principle payments, the list goes on. Make sure that you understand what everything means, especially before you sign any documents. Buying a home can be hectic, especially if you are involved in a bidding war. Knowing ahead of time what everything means can save you precious time in the heat of the offer.

Enjoy yourself!

Looking at houses that you might want to buy should be fun. So make sure that amid the search for your home, that you have fun. After all, you only buy your first house once.

Have any suggestions for our readers? What other suggestios do you have for first time home buyers entering the world of home ownership?

Just think about how much you can upgrade your lifestyle in a home. Most likely, a free-standing home will provide more privacy and quieter surroundings if you’re in school, have a baby in the family, or just want an escape from the noise that comes from sharing walls with your neighbors. You’re also much more likely to have enough space to host overnight guests, have a fenced-in backyard for a pet, etc.

In your own home, you can make all kinds of improvements that you can’t make when you rent. Not ready to live in a home alone? You can still have a roommate, and that person can pay you rent that you can put toward your home improvements or your monthly mortgage payments. In this scenario, someone else is helping you invest in your economic future, instead of the other way around.

Speaking of home improvements, a great thing about buying an REO home is that you can apply for FHA financing that includes the cost of the home and any repairs that may be needed. This allows you to take advantage of the incredible deals you can get when purchasing a fixer upper without having to worry about how you’re going to pay for repairs. This type of FHA loan is called a  Section 203(k) loan, the amount of which is based on the projected value of the home after repairs. And with a newly renovated home, you often get new warranties on things that needed to be upgraded.

If you’re a first-time home buyer, and especially if you’re paying for a college tuition, you may not have the money to make a hefty down payment on your own. With an FHA loan, you’re allowed to use money that’s given to you as a gift for your down payment. Plus, the down payment required on an FHA loan is usually less than what is required for a conventional loan. If you’re a first-time home buyer, you can also benefit from a government tax credit of $8,000 if you purchase a home as your principle residence prior to December 1, 2009.

Think you don’t have time to participate in an REO home auction? Today, even the busiest of people can benefit from the kinds of bargains only found at auctions. That’s because you no longer have to drive to an auction and spend an afternoon or an entire day bidding on a home. You can bid on properties and even see what others are bidding for those same properties on real estate auction websites like GoHoming.com.

Making regular monthly payments on a home that’s in your name is a great way to build your credit. And with great deals on Properties and REO homes, many people can afford to purchase homes now who otherwise could not have afforded it.  So, if you’re paying rent every month on a home that will never truly be yours, consider looking into REO homes. When you do, you’ll be pleasantly surprised by what you find, and you can rest easy knowing that you’re taking steps toward saving money, upgrading your lifestyle, and investing in your future.

Know more on:Reo foreclosure homes and Reo Properties for sale