Tips for First Time Home Buyers

Here are tips for first time home buyers.

#1 Don't feel pressured to buy. If a home you want is not available then don't buy. If you're able to save while renting, then keep saving. Don't feel pressured by "there won't be other deals like this." There are always deals - markets go up and down. And try, try, try to not let your emotions rule over your budgeting decisions.

#2 Don't be swayed to buy a home that's tough for you to afford. Be careful if agents say "stretch yourself."
My sister, Chrisia, a real estate agent in Latrobe, Pennsylvania, had this to say.

"Stretch yourself? Simply moving from renting to owning is stretching yourself.
I bought my house and 3 months later my hot water tank broke. Suddenly I was faced with a new expense I never had while renting. You're going to be faced with maintenance costs, remember."

She advises to "make a lateral move . . . if you’re paying $600 to $700 in rent then get a mortgage for the same amount." Remember, you'll have taxes and insurance on top of that payment.

#3 Don’t be afraid to ask seller to place home warranty on home as a negotiated selling point.

Again, Chrisia chimes in "If an item's broken due to attrition there’s no coverage, but if something breaks it can be a $50 service call.
I had one family who had a central air unit replaced for $50. It’s a savings and a sense of security as well. It’s about $500 for sellers to place coverage on home and it lasts for a year."

#4 Don’t be afraid to ask questions. If you’re working with someone who makes you feel stupid for asking questions then you’re working with the wrong REALTOR.

#5 Get your credit score as strong as possible, advises Las Vegas REALTOR Bill Cody.

"Fix your credit! A slight increase of your FICO score, can be accomplished in about 1 - 3 months, could have a large decrease in your mortgage payments. With the daily changes in mortgage lending requirements, 100% financing is still possible, but you most likely will need a 5 - 10% down payment."