Making the purchase For new homes the decision and purchase begins with a sales agent for the development. To initiate an interest, the buyer needs to identify which unit he or she wants to purchase. In some cases this happens as a lottery, in others it is managed on a first-come, first-serve basis. Once the unit is chosen and intent is expressed, the purchaser will be expected to place a deposit of a few thousand dollars to guarantee seriousness of wanting to buy. This starts the contract and financial process. With a used home the decision is again primarily dependent on the part of the homebuyer. The first time homeowner needs to decide which used home is the desired one, and then he or she needs to put in an offer to buy. An agent for the seller will usually receive the request, unless the seller is handling the affair himself, and will consider it. The seller may want assurances of ability to buy or finance the purchase to give the offer any serious consideration. Again, a deposit may be required to guarantee the offer’s seriousness. Remember, location is everything when it comes to real estate. Some locations will cost more because they are in neighborhoods that are considered better. This may seem like paying more for the same house as another neighborhood. It’s not; the higher price is buying you a neighborhood that has less of a chance of going bad. This becomes critical later on if you find you need to sell your home and move again. Bad neighborhoods tend to lose value, no matter how much remodeling you do inside a home. Financial Benefits of Being a First Time Homebuyer As one of the largest benefits to first time Homeowners, they benefit from government programs designed to promote home ownership. These programs essentially give favored status and underwriting specifically to home loans associated with first time buyers. The loans ultimately get sold by the lending back to the federal agencies, Fannie Mae and Freddie Mac, so the risk is taken off the bank and they can re-lend again. This makes borrowing more accessible to first time Homeowners who otherwise would not be considered. Many new home sellers will provide discounts to first time homeowners to attract them to particular developments and to sell units. This competitive discounting can seem small but even a 5 percent discount on a $300,000 home can be a $15,000 savings. Homebuyers in new developments can also often leverage discounts from various businesses for costs that will occur anyways. These vendors can include movers, hardware stores, local supermarkets and restaurants, and more. Much of the association depends on what coupon details the builder works out with local businesses.
Mortgage application
A layman’s guide for the first time home buyer.
First Time Homeowners .org
Purchasing your home
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