Resources for first-time home buyersDear Steve, I'm looking into buying a home for the first time. I don't really know that much about it, though. Where can I find all the financial information regarding the whole thing, so I don't get ripped off? Thanks,
Grateful Greg
Dear Grateful, Admittedly, the home-buying process can be intimidating to first-time buyers, with its curious talk of ARMs, points, escrow accounts and earnest money, and your personal credit and employment histories out there flapping in the breeze. But it's still a basic business transaction that's completed by thousands of people around the country each day. And if those folks can do it, you can do it and do it right. Fortunately, there's no shortage of materials and primers on the subject. In fact, first-timers such as yourself can find a wealth of Web and print materials to sift through in a minimum of search time. I'll be glad to shepherd you along a bit. While you're, ahem, on this site, search the dozens of Bankrate.com articles and columns in the site's
real estate channel on the subject, including "
Home buyers, start your engines," an excellent overview of the home-buying process penned by Bankrate's Holden Lewis.
Also on the Web, look for first-time home buyer advice offered by the federal
Department of Housing and Urban Development.
Do your own Internet searches under "first-time home buyer," and later add such key words as: advice, primer, guide, tips, mistakes, finances, mortgage and checklist to that search. You'll find the resources are practically limitless. As for books, there's a small library of them. Powell's Books, an independent seller of new, out-of-print and used books, lists 240 entries on the home-buying subject, including the ubiquitous "...for Dummies" entry.
And don't rip yourself off. My own humble advice is that you
get pre-approved for a loan before you pick out a house, but remember that it's not just the loan officer; it's you who really knows what you can afford and how imposing your other expenses may be.
So I suggest you start out modestly with a home well within your price and income range. You can always move up later. Foreclosures are on the rise because people have overextended themselves without a financial buffer in the event of job loss, illness or other life-changing circumstance that comes along. So sally forth, Greg, but with self-imposed caution. And don't be afraid to ask questions, no matter how silly or simplistic they might seem. And good luck, future homeowner.
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