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What You Need to Know as a First Time Homebuyer

Are you a first time homebuyer? There are many different variables you are going to want to consider. (Did you know that you could have owned a home before and still qualify as a first time homebuyer? That is true; anyone who has not owned a home for three years is considered a first time homebuyer by most lenders.) Bills.com can help all first time homebuyers with their special needs.

How much you can afford is a question no first time homebuyer can afford not to ask. Don't rely on what the lender says you can afford; lenders' interests and your interests are not necessarily the same. As a first time homebuyer, you need to come up with a realistic budget so you don't end up with more house than you can afford.

While having a down payment will increase the options available to you, there are many mortgage loans available that don't require a first time homebuyer to make a down payment. Make certain to investigate all the financing options available to you. Look into government backed loans such as FHA or VA, as they can open up opportunities to own a home to first time homebuyers who may not qualify for any other loan.

Being knowledgeable about your credit is also something you, as a first time homebuyer, cannot ignore. Get to know your credit report. Make sure that your credit report does not contain any inaccurate information. You will also need to learn ways to improve your credit, so you can position yourself for the best possible loan.

Use Bills.com as your one stop resource as you evaluate all of the options and issues related to being a first time homebuyer.

• Why should I buy a home instead of rent one?
  Aside from being able to say that you're a homeowner, there are other financial benefits to buying instead of renting. For starters, when you purchase property, you're making an investment that will most likely increase in value over the years. Also, you can deduct your mortgage loan interest costs from your federal income taxes and frequently from your state taxes. As a renter, you can't deduct renting costs and you never own the residence you reside in.

• How much should I put down on my mortgage?
  The rule of thumb is to put down 5%, 10%, or 20% of the sale price. The more money you put down, the lower your mortgage payments will be.

• Should I use a Real Estate Agent/Broker to Buy a Home?
  Yes. A real estate agent/broker can guide you through the entire home buying process, including finding a home, negotiating a price, and dealing with escrow, and make the experience as painless as possible. A good real estate agent will also be able to give you information about different neighborhoods, quality of schools, and other details regarding the surrounding area.