First-Time Home Buyers | Common Mistakes Smart People Make When Buying Their First Home

From research and experience with First-Time Home Buyers, I have compiled a list of some common mistakes smart people make when buying their first home. This is not an exhaustive list, but I hope it will help you avoid making a few mistakes yourself.

Avoid These Common Mistakes Smart People Make When Buying Their First Home

Mistake #1 Not knowing how much they can afford before they make an offer.


The easiest way to avoid this mistake is to get pre-approved for a mortgage so you know in advance exactly how much you can afford.


Mistake #2 Not realizing in advance whom the real estate broker represents.

When you call the broker on the sign in the yard, that broker is most likely working for the seller (the one paying the commission). So be aware that any information you give that broker may be used against you in negotiations with the seller. The best way to avoid this conflict is to find a broker willing to work with you as a Buyer's Representative. Ask about our Exclusive Buyers Service Agreement and remember this agreement is a binding contract. Always read through a contract carefully and ask questions until you understand every part of the agreement before signing.

Mistake #3 Not discovering hidden defects before they buy a home.

One of the most expensive mistakes is also one of the easiest to avoid, by having a professional do a whole home inspection before buying the home. Even if the home is new construction, we recommend full home inspections to avoid any problems in the future. Be informed. Know what you are buying, from the crawlspace to the roof.


Mistake #4 Giving a Social Security Number out to several different mortgage companies while shopping for rates.

Before you give out your personal information, decide which lender you would like to work with. Credit inquiries may affect your credit rating and have a negative impact on loan amount, interest rate, etc. There is a short window in which you can shop for loans without it damaging your credit rating. Check with your lender concerning this matter. To avoid these mistakes and others, visit my website at http://www.newberghome.com/ for additional First-Time Home Buyer tips and information. I can explain the home buying process in simple terms, and show you how I can help make the process of buying your first home much smoother and less stressful.



Anyone can sell you a house. I’ll teach you how to buy your first home.
-Teresa Kolb

http://www.newberghome.com/


e: TeresaKolb@NewbergHome.com

t: www.twitter.com/MyTurn2Own

f: www.facebook.com/TeresaKolb

First-Time Home Buyers | 6 Reasons You Should Buy Now

If you are considering buying your first home, you’re probably like most property virgins who have reservations about whether buying and owning a home is right for you.

The more you know about buying your first home, the easier the entire process will be for you.

Here are six great reasons why you should buy a home right now:

Pride of Home Ownership:
This may seem cliché, but pride is the #1 reason people want to own a home. You have the freedom to make the choices you want, whether it is landscaping, wall color, or choosing home décor. Plus, owning a home gives a sense of security, and stability. You are investing in your future, instead of your landlord’s future.

If down payment is a concern for you, there are down payment assistance programs that you might qualify for. Click here for a link to Oregon’s First-Time Home Buyer’s Down Payment Assistance Programs

$8,000 Cash in YOUR Pocket!
Seriously! First time buyers who buy before December, 2009 will receive a lump sum of $8,000 in the form of a tax credit (this could be money in your pocket). For more on the First Time Buyers Tax Credit, click here.

Property Appreciation:
Although the real estate market has been hit hard the last few years, real estate moves in cycles, sometimes up, sometimes down. But even though the value of property fluctuates, historically real estate increases in value over time, and many who purchase their home consider their investment as a hedge against inflation. Buying now, at the low end of the market, virtually guarantees that your home will appreciate over the next few years.

Build Equity:
Each month, part of your monthly payment is applied directly to the principal balance of your loan, which reduces your obligation. Every payment that you make reduces the interest on your loan, and increases the amount that is paid toward your principal balance. As the amount of your interest decreases, and the amount you pay toward principal increases, the amount of equity you have in your home builds. Over time, you will build significant equity (and wealth) just by making your house payment.

Home Owners Are Wealthier Than Renters
Simply put, those who own their own homes build more wealth than those who rent. See what the Federal Reserve Board says. You may be able to own a home for about the same amount you now spend on rent. To see homes you can buy at your current monthly rent, click here.

Tax Deductions:
Real Estate property taxes paid for a first home are fully deductible for income tax purposes. Additionally, many of the costs associated with buying the home are deductible. Mortgage interest is also fully deductible on your tax return, as long as the balance on your mortgage is smaller than the price you paid for your home. Read what the IRS has published regarding tax information for first-time home buyers.

It's a great day to buy!
Teresa Kolb

http://www.newberghome.com/

e: TeresaKolb@NewbergHome.com

t: www.twitter.com/MyTurn2Own

f: www.facebook.com/TeresaKolb

See Homes You Can Buy at Your Current Monthly Rent

You may be able to own a home for about the same amount you now spend on rent. Simply enter your current monthly payment and the location you want to search. You'll see a list of all the properties in that area that fit within your monthly budget. Homeownership could be just a search away.*Based on a 6% 30 year fixed rate loan with a 20% down payment. Does not include taxes, insurance, utilities and other expenses. Listed only as an estimate.

For the Free Calculator, go to my Website: http://newberghome.com/ and click on the link in the middle of the home page "Click Here to See Homes You Can Buy..."

And as always, I'm here to answer any questions you might have about buying your first home! Email me: TeresaKolb@NewbergHome.com