First Time Home Buyers

Written by Stephanie Dula
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There are a host of online services geared toward first time home buyers and their special set of needs. In a society that puts a lot of emphasis on home ownership and its benefits, the prospect of buying a house can seem like an unattainable dream for many people. Realtors and brokers are constantly coming up with ever-more creative ways to fulfill that dream for even those with low incomes or non-perfect credit.

Pre-Mortgage Homework

Before even considering a plunge into the world of house shopping, it's a good idea to get a handle on one's personal credit and finances. Paying off high-interest credit cards and maintaining a decent debt-to-income ratio are helpful steps in the preliminary process. Potential home buyers should avoid changing jobs, taking on new debt, and closing existing credit accounts during this important phase.

Researching current interest rates and mortgage products are also important steps in understanding the differences between quality programs and scams. The more knowledge one has regarding financial terminology, the better. There are a host of online tools like glossaries and mortgage calculators to help first time home buyers navigate the world of mortgage approval.

Getting pre-approved and pre-qualified is the next step in the game. While both processes involve an inspection by a mortgage lender into one's personal financial profile, getting pre-approved is the second and more thorough of the two. Once pre-approval has been achieved, buyers can begin looking at homes, knowing exactly how much they can afford.

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