First Time Homeowner Tips

If you are going to be a first time homeowner here are some tips you should know.  Although, saving is always recommended -- this is one time it's not.  If you are about to start your search for your first home you should clean up your old baggage.  Meaning, pay off of pay down old debts. Especially, pay off credit card balances and correct any errors on your credit report.  When you are searching for a mortgage your balances on credit cards are considered in determining your interest rate for your mortgage.  So, paying your credit cards off or down is a smart move. 

The second "First Time Homeowner Tip" is don't spend over your head.  Even if a mortgage broker is telling you - you can afford more, you are in a better position to answer that questions.  Consider your life style -- dinning out, movies, and the like into the equitation.  Your mortgage payment will be a combination of principle payment, taxes, PMI (private mortgage insurance -- if your down payment is less than 20%), and insurance. Remember, from your savings you will have to pay closing close.  Therefore, your savings or emergency fund will be decreased.

Getting pre-approved is a smart move.  By getting pre-approved you will be able to work out a budget before you buy.  

For more First time Homeowner Tips go to the ING blog.  There is a link to the right. 

The last tip for first time homeowners is that it's a buyer market.  Which means you have the under hand.  So, don't be afraid to negotiated on the price.  A people wanting to sell there home in this type of market may be willing to settle for less.