If you are a first time homebuyer, we understand that buying your first home can be daunting.  Getting all the facts before you jump into the purchase market, is a step in the right direction.  The following questions will help you get started to understand the marketplace in the Tri State area of Delaware, Maryland and Pennsylvania.  Today the choices for first time homebuyers have never been better.  

An often used mortgage product for many first time homebuyers is FHA.  The facts about how you can qualify for this program is included in this informational blog.  

Part I Getting Started

Part II Finding Your Home

Part III You’ve Found It

Part IV General Financing — Questions:The Basics

Part V First Steps

Part VI Finding The Right Loan For You

Part VII Closing

Part VIII How Can HUD And The FHA help Me Become a Homeowner

Part IX Mortgage Insurance

GETTING STARTED

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 buy a home? How much can you afford in a monthly mortgage payment (see Question 4 for help)? 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. Talk to friends and family, drive through neighborhoods, and look in the “Homes” section of the newspaper.

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.

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