What to Look for as a First Time Home Buyer
Finding an Agent
When looking for an agent they should have an understanding of your needs. They should also have a willingness to work with you until your needs are fulfilled. They should be professional and dedicated. They should have a total familiarity with the area in which you have an interest in living. They should have a familiarity with the price range in which you want to purchase. You will defiantly want an agent how has a certification from or a Graduate of the REALTORS® Institute, or Certified Residential Specialist. If you can find strong references from previous buyers that is always a plus but not necessary.
Depending on the type of financing you choose, there should be either 2 or 3 separate inspections on the home you want to purchase. The first should be your own basic inspection, the second should be a professional home inspection by a reputable certified person. You should select a government loan (FHA or VA), the third inspection should come at the time of the appraisal, which to some degree amounts to a “mini-inspection.” Do not, however, rely on this appraisal as your only inspection of the property.
Types of Mortages
Fixed: A fixed term (for example, 15 or 30 years) as well as a fixed interest rate. The interest rate and terms are fixed at the start of the mortgage. The monthly amount for the payment of principal and interest will not change during the term of the mortgage.
Adjustable: Often referred to as an ARM (Adjustable Rate Mortgage). The interest rate on your mortgage will be adjusted up or down according to current interest rate levels. The monthly amount for your principal and interest payment will go up or down with these rate changes. These mortgages may include “Interest Only” type of loans. Also, adjustable loans are very dependent on the state on the current economy.