Mortgage Tips For Mortgage Refinancing During Global Recession!: First-time Homebuyer Heaven

There has never been a better market in which to be a first-time home buyer.

The rising tide of foreclosures has pushed down home prices significantly over the past 18 months.

Homes, relative to income, are about at the historic norm, which means they’re more affordable than they’ve been in at least a decade.

Beyond that, if you buy a foreclosed property, you might wind up with spending even less.

Spending less to finance a property means you can buy more for your money or buy less and save more for retirement or other purposes.

With interest rates so low, and the price of homes falling, homeownership becomes affordable to many first-time home buyers.

When it comes to hiring a real estate agent, sales are so slow that even the best agents aren’t that busy.

That means you shouldn’t feel rushed or pushed into making decision.

Your agent should have time to really help you understand what you want to buy, and help you secure an excellent deal on a property.

While the housing crisis continues to play out, some first-time buyers are finding a wide-open road leading to the house of their dreams.

If you want to make sure the house you buy this year is a smart financial move, follow these quick tips:

1) Get pre-approved for your loan before looking for a house. If you get pre-approved, that means the lender has to pull a copy of your credit report, you have to apply for the loan, and the lender has to approve your application.

Once you know what you can spend, find the right neighborhood for the next 7 to 10 years. If you plan to stay in your home for at least 7 to 10 years, you’ll be able to ride out almost any downturn in the market.

That’s important because it’ll cost you around 10 percent of the sales price to sell that home. Over 7 to 10 years, you’ve got a good chance of at least breaking even on the sale, plus you’ll have build up a decent amount of equity by paying down your mortgage each month.

2) Don’t go for flash – buy what you need. You can always add granite countertops to a kitchen. It’s a lot harder to buy the size house you need in your school district of choice.
So, buy something a little faded and dated and upgrade over time as your budget allows.

3) Make sure you have cash in reserve. Houses always need something, so when you’re calculating your budget, make sure you allow some extra cash for upkeep and maintenance.