Cheap Homes and Tips For Buying a House in Sale

A home is a financial asset and more: it's a place to live and raise children; it's a plan for the future; it's an investment in your community. That's why all Americans should have an opportunity to enjoy the benefits of owning a home. And here are some tips for first-time home buyers.

Knowledge is said to open doors. This is literally true when it comes to buying a home. To become a first-time home buyer, you need to know where and how to begin the home buying process. The following questions and answers have been carefully selected to give you a foundation of basic knowledge of home purchasing. In addition to helping you begin, these steps will give you the tools necessary to navigate the entire home buying process - from deciding whether you're ready to buy house, all the way to that final proud step of owning a home, getting the keys to your new home.

1. HOW DO I KNOW IF I'M READY TO BUY A HOME?

You can find out by asking yourself some questions:
Do I have a steady source of income (usually a job)? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable?
Do I have a good record of paying my bills?
Do I have few outstanding long-term debts, like car payments?
Do I have money saved for a down payment?
Do I have the ability to pay a mortgage every month, plus additional costs?
If you can answer "yes" to these questions, you are probably ready to buy your own home.

2. HOW DO I BEGIN THE PROCESS OF BUYING A HOME?

Start by thinking about your situation. Are you ready to Buying a House? How much can you afford in a monthly mortgage payment? How much space do you need? What areas of town do you like? After you answer these questions, make a "To Do" list and start doing casual research about property. Talk to friends and family, drive through neighborhoods, and look in the "Homes" section of the newspaper, Foreclosure Listings, and internet search.

3. HOW DOES PURCHASING A HOME COMPARE WITH RENTING?

The two don't really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.

Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that's an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.

Know more about Home Buyers Classes and with the information of home buying, home selling, financing and owning real estate http://www.homeownershipu.com/

Is it a Good Time to Buy a House?

It's a constant question now in the real estate market: Is it a good time to buy a house? Of course it is difficult to answer in an article since you may be reading this years after it is written, when conditions have changed. But whenever you find this article, the following three crucial factors are what you'll want to look at to answer the question for yourself.

Home Values

At the moment, the first thing most people are wondering when they ask if it's a good time to buy a house, is whether prices have finally stopped falling. Since a home is seen as an investment of sorts, we all like the idea of buying when values are rising. I am writing this in early 2009, and no, home values not only are not rising in most areas, but they don't seem to have stopped falling.

We just bought a home anyhow, and there are several reasons why we felt comfortable doing so. The first is that prices don't seem to be falling much in our area (Canon City, Colorado). Apart from the various foreclosures that are dragging prices down a bit, the market here is much more stable than in other parts of the country. A stable job base and the fact that prices never rose too far too fast during the "boom times" helps.

The real estate market does not act the same everywhere in the country. So to see if a bottom is near or if prices are rising, pay close attention to what is happening where you are. On the other hand, we did not buy counting on rising prices, because that is not the only determining factor. In fact, it is possible that the problems in the country will get worse and drive prices down 10% or 15% even here. So what else made us decide that for us it was a good time to buy a house?

Interest Rates

At the moment you can get fixed rate 30-year mortgage loans at about the lowest interest rate in your lifetime (no matter how old you are). Our own rate is 4.5%. That's not a variable or "teaser rate." It is fixed for the thirty years of the loan.

Let's look at why this matters so much - as long as you plan to stay in the house for a while, as we do. Suppose you pass on Buying a House that is selling for $200,000 and waited a couple years while prices fall another 10%. But suppose that at that time interest rates were up around 7.5%. You buy the house for $180,000. The payment (assuming you have a 10% down payment and borrow $162,000) is $1,132 each month for principal and interest.

But what if you had bought at $200,000 and put 10% down? Then your payment on the $180,000 loan would have been $912. That's right, you would be paying $220 more each month if you waited and bought at the lower price. That amounts to $77,200 more that you would pay over the thirty years if you stayed in the house that long ($79,200 more in payments, but you saved $2,000 on the down payment). This demonstrates the importance of the interest rate in determining your true cost.

Personal Situation

Is it a good time to buy a house, then? That depends not only on prices and their direction, and not just on interest rates, but on where you are financially. How secure is your income? If you lost your job, could you make the house payments for six months while you looked for another? Can you count on finding another job that will provide enough income to pay for the house? Are you going to be staying in the area long enough to justify buying (renting can often make more sense if you will be moving within a few years)? These are the more difficult questions to answer, but perhaps the most important in determining if it is a good time for YOU to buy a house.

Know more about Home Buyers Classes and with the information of home buying, home selling, financing and owning real estate http://www.homeownershipu.com/

Some Pointers About How to Buy A House

When thinking about how to buy a house there are many things you should think about but I have come up with 6 of the most important tips for how to buy a house. In today's real estate market it is fairly clear that it is a Buyer's market. With that said, you should not expect to go out and buy a home for $100,000 under asking price or be surprised that someone else is also interested in the home you like.

1. First of all if you have purchased a home in the past you need to understand that what yo paid for your last home has very little to do with what you will be for your next home. You should not get caught up in some expectation that somehow what you paid for your home will correlate to what your next home will cost or to current real estate value. More importantly you should get a clear understanding of your home’s value and use that to help figure what price range you can afford and where you should start your home search.

2. Now that you have that figured out you should also think about how you will sell you home if you have a home to sell. There have been markets in the past when inventories were lower that could be manipulated well by the For Sale By Owners (FSBO's) but in this current housing environment you need to hire an expert, preferably a Realtor to help get your home sold quickly. With all the homes available you want to have an expert help you figure out the exact selling price for your home as well as have an understanding off the small nuisances of selling that can save you a ton of time and make your home be the first one to go on your block.

3. Also, you need to be sure you are current on home market values. With all the changes happening in the market it is important to know that what a home sold for 6 months ago is no longer relevant to what a home will sell for today or tomorrow. Especially considering the past few months with the tax credit expiration; if you were to use sold comps and days on market values from April you would see homes selling for much more and faster than the current conditions.

With that said if you look at home prices from last month along with the showing activity you would see that things are selling quicker today with more activity. Bottom line, things change quickly so try not to get too hung up with what your neighbor purchased their home for 6 months ago just focus on the deals you are finding today. You need to be prepared and understand your market so you can learn how to buy a house. Here is what you should think about in order to get prepared.

4. Be aware of home interest rates. Rates can fluctuate and it can have a big change in your buying power. For example you would have approximately the same payment if you purchased a $250,000 home at a rate of 4.5% as you would on a $225,000 at a rate of 5%. Therefore you could potentially lose $25,000 in buying power if rates just moved slightly so pay attention to the current rates.

5. Related to rates - you should consider who you get your mortgage through. While there are any number of people out there right now hustling trying to help find loans for buyers, when you are making an important financial decision such as buying a home you will need to make sure that you are working with someone you can trust. A good mortgage professional can make the difference off you getting your home or not. I am sure you have heard of people not getting their home because the loan fell through. That is a big reason you need to work with someone you can trust to get the deal done. One thing we like to do is give you a good faith estimate that we know is competitive and then let you try to find a trustworthy source to beat our rate. If you can do that you will be confident you have a good deal.

6. Finally, recognize that despite the dire numbers and predictions, there really never has been a better time to buy a home; provided that you are ready. If you are in it with a long-term commitment in mind and you are financially ready, there are some great deals available. Over the course of time you will likely find that you will be glad you made the decision to purchase.

I hope these tips have helped you gain an understanding of how to buy a house. Please contact us or feel free to comment if you have suggestions or stories to tell from your experience.

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Home Buyers Classes - First Time Home Buyer Grants

When it comes to the real first time home buyer grants, I hate to disappoint you, but they are greatly misunderstood. Why do I say that? Many people are trying sell books and CD's telling you how easy they are to get. It's not that easy.

In this article I want to help you understand first time home buyer grants and how they really work.

HOW FIRST TIME HOME BUYER GRANTS WORK

Each year the federal government will grant money for housing programs. Without many exceptions it's done through the Department of Housing and Urban Development or HUD.

Many people have been lead to believe these first time home buyer grants can be obtained on their own. That's why there are so many websites, books and CD's being sold. The masses are told that all you have to do is apply and the FREE money is all yours and you do not have to pay it back.

Well, there is some truth to that but it's not quite so easy. Like everything else in this information age, it's all about the money. The money you put into the pockets of the people selling the information.

Please keep reading to learn how you can get a first time home buyer grant.

HOW TO FIND FIRST TIME HOME BUYER GRANTS

First of all, save your money. Don't bother buying those books and tapes. First time home buyer grants are found right in your own neighborhoods. First you need to learn how to buy a house.

What happens each year is HUD will allow so many millions of dollars to go to non-profit agencies in your community.

So how do you find these agencies? I'm glad you ask, because I want to tell you. Before I do, allow me to tell you a little story.

I used to be a loan officer for a large national bank. I specialized in first time home buyer loans. I really enjoyed helping people buy their first home and realize their dreams.

I had this couple one time who wanted to buy a home. She asked me about first time home buyer grants. I was not the sharpest knife in the drawer so to avoid looking too stupid I offered to find a grant for them.

After a great deal of homework, I found a non-profit agency that offered grants for people buying their first home right in our own city. They had several hundred thousands of dollars available.

Wow, I thought this was great. So I proceeded to help the couple apply for the grant money. They were going to buy a home with an FHA home loan. I really recommend you do the same thing. Use the FHA mortgage since it works well with the grant programs. In fact, HUD is the government agency behind the grants and the FHA loan program.

Sorry, I got to rambling on. To make a long story short, the couple received a $5,000 grant. We used this for the down payment. As long as they lived in the house for a specific period (5 years I think it was) they would not have to repay the money.

So it was a true grant. FREE government money. The only strings attached was how long they lived in the home.

WHERE TO FIND FIRST TIME HOME BUYER GRANTS

Ok, this is where the work comes in.

Each and every state has non-profit agencies who get this grant money for first time home buyers. Finding them is the trick.

If you go to the HUD website, search for grants in your state. Then drill down to find the counseling agencies in your city or nearby. Once you find one, give them a call.

You will need to attend Home Buyers Classes on home ownership. It varies in length, could be one day long or two. They want to help you understand the responsibilities of home ownership and help you stay in your home.

These agencies are funded by the US government and are there to help you. They get the grant money each year and when it runs out, you have to wait until next year.

So do your homework and search at the source itself. Go to the HUD website and browse around. It's not that hard. Just be patient.

The programs do change from year to year. So the agency will be better able to tell you what's available. All you need is the phone number to get started.

Know more about Home Buyers Classes and with the information of home buying, home selling, financing and owning real estate http://www.homeownershipu.com/

Tips For Buying a House

Buying a house is an exciting experience especially for first-time buyers. The idea of finally having your own place and having the liberty of doing anything about it such as renovations makes buying a house a dream come true for most. However, being a homeowner is not that easy. You'll have to consider your responsibility to maintain the house to keep its value for the coming years.

If you have decided that you are indeed ready to buy your own home and become a responsible homeowner, then read these tips for an enjoyable and stress-free house buying.

Find a suitable location

One of the most important things to consider in buying a house is the location. Search for a house that is located strategically. The house should be located in a well-maintained community with nearby schools, hospitals, police stations, fire stations, public libraries, gasoline stations and recreational facilities such as shopping centers and theaters. Ideally, the community should be secure and with peaceful neighbours.
House hunting, indeed, is no walk in the park so be sure that you know your preferences and always consider the concerns of other family members. You can keep track of the houses that you are visiting by taking pictures, writing down descriptions and rating each house.

Determine your budget

Your financial capability is important when Buying a House because it involves a large amount of money. The exact amount which you are willing to spend will determine the kind of house that you should look for.
Assess your credit score and be pre-approved Mortgage, which refers to a loan for the purpose of buying real estate such as a house, is a recommended option for homebuyers. Therefore, it is important to review your credit standing and see if you are qualified to apply for such loan to help finance your dream house.

A good credit score provides plus points for a mortgage application. Search for a lender which will guide you in the pre-approval. Pre-approval for a loan will depend on your current financial status. Getting pre-approved is a positive step to acquiring a mortgage. It also keeps you on track on the price limit of the houses that you should look into. Moreover, a pre-approval record is a good way to convince a house seller that you are sincere in buying that house so you can have a better bargaining power.

Consider a real estate agent

A real estate agent can help you find a home that fits your requirements so make sure that that person is reputable and that he or she meets your standards. Also, make sure that your potential agent understands every detail of your preferences. A real estate agent will also guide you in the negotiation process with a potential house seller.

Negotiate then buy

If you find a house that you like, make an offer to the house seller. Make sure that you are armed with information on the current market value of houses in the area and most importantly know the lowest possible price that the seller is willing to agree on.

Once you have agreed on a price, you will have to go through the process of actually buying the house. This involves getting the expertise of a home inspector, drawing the terms of agreement and having a lawyer review the contract. After all the paperwork is done, a deposit on your part will be placed in escrow until the sale is final.

Know more about Buying a House and with the information of home buying, home selling, financing and owning real estate http://www.homeownershipu.com/