As a first time home buyer, you probably need all the advice you can get. That’s why I’ve collected what I feel are the top 15 pieces of advice for first time buyers. These tips will help make your home buying process a smooth one!

1. Get a copy of your credit report.
Obtain a copy of your credit report from all three credit agencies — Equifax, Experian and TransUnion. Review them closely for errors / inaccuracies.

2. Correct your credit report.
If you find a discrepancy on any of your credit reports, correct it as quickly as possible. All three credit agencies have instruction on their websites for correcting mistakes. Their web addresses are their company names with “.com” at the end.

3. Make a wish list.
This list should include all of the things you want from a home. Size, location, features, etc. Prioritize the items as either “must have” or “nice to have.” This will save you time later on and help you remember what’s important to you.

4. Research local real estate agents.

Start by asking friends, family or coworkers if they can refer a local agent they were happy with. If that doesn’t pan out, move on to search engines and the websites of well-known companies.

5. Hire an agent.

Even with all of the home buying websites available these days, it’s wise to hire a real estate agent. Consider the amount you’ll pay for a home, and the agent’s fees will seem insignificant by comparison. And the peace of mind is priceless.

6. Get pre-approved for a home loan.
This will help you in several ways: (1) It will identify credit problems early on in the home buying process. (2) It will reveal how much you can realistically afford. (3) It will show sellers you’re serious about buying and capable of doing so.

7. Set up Google Alerts.
How would you like to have your own robotic research assistant, scouring the Internet for you 24/7 in search of relevant real estate news? That’s what you get with Google Alerts. Set up alerts for key phrases (ex: “Dallas real estate news”), and Google will notify you when it finds new content on the Internet matching your phrase. Visit Google.com/alerts.

8. Learn your mortgages.
You can’t choose the right mortgage unless you know the pros and cons of each type of mortgage. Learn everything you can about fixed-rate mortgages, adjustable rate mortgages, balloon loans, and government-backed mortgages like FHA and VA. When reading about these mortgage types, pay particular attention to any passage that starts with “This mortgagte might be a good option for you if…”

9. Read up on RESPA.
RESPA stands for the Real Estate Settlement Procedures Act. RESPA gives you rights to certain mortgage information at certain times during the home buying process. You should learn all about RESPA, and you can do so by visiting www.HUD.gov.

10. Get a home inspection.
A home inspection will usually cost you between $300 and $600. This is a small price to pay for peace of mind. A home inspector will check the status of your future home’s foundation, roof, heating / cooling system and more. You can also accompany the home inspector to learn about these parts of the home.

11. Ask plenty of questions.
Ask questions of your agent, the sellers, your mortgage lender … everybody. Don’t ever think you’re annoying somebody by asking too many questions. Get all your questions answered, every step of the way!

12. Take plenty of notes.
When house hunting, bring a notepad along. Also bring a digital camera if you have access to one. Take notes about each house (labeled by address) to help you recall the details later on. This is especially important if you’re looking at a lot of houses.

13. Bring a friend along.
The buddy system is great for house hunting. By bringing a friend along on house visits, you’ll have an objective third part to point out the pros and cons of each property.

14. Find out about schools.
You should know about the quality of local schools regardless of whether or not you have school-age children. If you do have children, you’ll surely want them in good schools. If you don’t have children, the quality of schools is still important because it affects your resale value.

15. Visit HomeBuyingInstitute.com
You can learn more about any of the home buying tips on the list (plus a lot more) by visiting HomeBuyingInstitute.com. It’s the Internet’s largest library of home buying tips and advice, and best of all it’s free!

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author’s note, and also leave the hyperlinks active.

Learn more!
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet’s largest library of home buying advice. Increase your home buying intelligence by visiting: http://www.homebuyinginstitute.com!

Tags: buying a home, home buying, home loan, Mortgage, real estatebuying a home, home buying, home loan, Mortgage, real estate

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Settlement (also referred to as closing) is a critical part of the home buying process.

During settlement, ownership of the home gets transferred from the seller to the buyer. This involves a lot of paperwork, a lot of signatures, and usually a lot of questions.

As a home buyer, you can prepare for settlement by understanding what you need to do before the actual day of settlement. This will make the entire home buying process smoother and less stressful.

Some of the items on this list may seem obvious, but I’ve included them anyway to make the list as complete as possible. Keep in mind that settlement laws and requirements may vary from state to state.

Pre-Settlement Checklist:

• Loan Approval - This is first and foremost, because you can’t proceed toward settlement / closing until you get approved for the loan. Once you’re approved for the loan, the settlement process is in motion.
• Truth-in-Lending Statement - Shortly after applying for the loan (usually within three business days), the lender will give you a truth-in-lending statement. This statement shows the total estimated cost of the loan, including fees, interest rates and payment terms.
• Set the Date - The time and place of settlement will usually be agreed upon between the lender, the settlement company, and the buyer and seller.
• Transfer Utilities - Call to transfer all applicable utilities (gas, electric, etc.) to your name, effective on the settlement date.
• Hazard Insurance - Most lenders will require hazard and liability insurance, at least up to the loan amount. You need this to satisfy their requirements, but you should also choose a policy that protects your investment and give you peace of mind.
• Final Walk-Through - A day or two before settlement, you will conduct a final walk-through of the house. This is your last chance to view the property before taking ownership of it. Make sure everything is as you remember it (no new damages, all conveyed items present, etc.). Also, if you made the contract contingent upon certain repairs (based on the home inspection), make sure those repairs have been completed.
• Settlement Statement - At least one business day before settlement, you should receive a settlement statement (also referred to as a HUD-1 statement). This document will list all the costs you’re required to pay at settlement. Review it carefully. If you find errors or items you don’t understand, bring it up with your real estate agent, attorney or settlement agent. Don’t let your questions go unanswered!
• Certified Check - In most cases, you will need to bring a certified check with you to settlement to cover all the closing costs. The amount of this check will be based on the settlement statement. Be sure to bring a photo ID with you as well.

Understanding the settlement process will help ensure a smoother home buying process. Be proactive about the items on this list. Don’t just wait for them to happen — make them happen.

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author’s note, and also leave the hyperlinks active.

Learn more!
To learn more about the home buying process visit HomeBuyingInstitute.com, the Internet’s largest library of home buying advice. Visit: http://www.homebuyinginstitute.com today!

Tags: buying a home, home buying, home loan, Mortgage, real estatebuying a home, home buying, home loan, Mortgage, real estate

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Buying a home with no money down can help you stop paying rent and start building equity. With so many programs out there for first time home buyers, you can find a loan that will fit your budget. Before signing any paperwork though, look at all your lending options. With online lenders, you can often find better financing than with your neighborhood bank.

What Buying a Home With No Money Down Can Do For You

A no money down mortgage can help you buy a home with little out of pocket expense. No money down can mean either no down payment or no closing costs paid up front. In either case, your rates and fees will be higher. But without the obstacle of thousands due at closing, you can get into a home easily.

Finding A No Money Down Mortgage

Many lenders, even sub prime lenders, offer no money down mortgages. The best source for loan quotes is online for easy access. You will want to look at the APR which will include closing costs. Even if those closing costs are rolled into the principal, you will be paying for them.

Most sites will have the options to check for a no money down loan. It will usually be a check box. If the option isn’t available, send an email requesting a quote. Typically no money down loan rates are a couple of points higher than traditional loans.

Improving Your Home Loan Odds

No money down home loans increases the risk for financial companies. However, you can offset that risk be proving that you have the means to make payment. Large cash assets are what lenders are looking for. So you might consider increasing your savings account or CODs while applying for a loan.

Other factors, such as the housing market, your income, and credit history, will also affect your application.

Other Mortgage Options

While you may want a no money down mortgage, keep your options open. You may find a better deal by being willing to put down at least a small down payment. You can always tap into that equity with a second mortgage.

The other option is to finance your home purchase with two mortgages, usually held by separate financing companies.

View our recommended lenders for an
Online Mortgage Quote.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about
various types of loans.

Tags: buying a home, finance, first time buyer home loan, house, Mortgagebuying a home, finance, first time buyer home loan, house, Mortgage

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