First-Time Home Buyers

5 tips for first-time mortgage borrowers

Fri, 31 Jul 2009 18:24:27 GMT

First-time home buyers should shop around, educate themselves about mortgage products. Shopping for a mortgage can be intimidating. It’s natural to feel anxious about doing something new for the first time, and getting your first mortgage is no exception. Fortunately, there are a few ...

What you need to know about private mortgage insurance (PMI)

Tue, 21 Jul 2009 20:14:33 GMT

PMI lets you buy a house with less than 20 percent down in exchange for higher mortgage payments. Private mortgage insurance is just what the name implies: insurance that covers the lender in case the home buyer defaults. If you put less than 20 percent down on most mortgages, chances are your le...

PMI may be tax deductible

Tue, 21 Jul 2009 20:14:32 GMT

Federal government allows a tax deduction for private mortgage insurance (PMI). If you obtain a new home loan with private mortgage insurance in 2007, you might be able to deduct the cost of the insurance on your 2007 federal income tax return. The rules are just as complicated ...

Top 8 things to know about a mortgage

Tue, 21 Jul 2009 20:14:32 GMT

Shopping for your first mortgage can be confusing. Here's a guide to the most important things you need to know about mortgage loans. Deciding what type of home loan is best for your needs is an integral part of the home-buying process. But it’s not always easy. Here are the most important factors you should compare when shopping f...

How to make yourself desirable to mortgage lenders

Tue, 21 Jul 2009 20:14:32 GMT

Getting ready to apply for a mortgage? These steps can help make sure you get the best loan possible. Whether or not you can buy a home often depends on your ability to get a mortgage, and this can be a challenge if your credit history isn’t perfect. But there are things you can do to make yourself a...

Pre-qualified versus pre-approved

Tue, 21 Jul 2009 20:14:32 GMT

Q: I've read it's a good idea to get pre-qualified or pre-approved for a mortgage before going house hunting. What is the difference between these terms? A: Getting pre-qualified is the first step in the mortgage process. It involves supplying a lender with basic information regarding your debt, income and assets. From this information, lenders can ge...

How much house can you afford

Tue, 21 Jul 2009 20:14:30 GMT

Q: How do I know if I can afford a house? A: Through a little bit of research, you can easily figure out if you can afford a house. 1. Add up your monthly expenses. Although spending a couple of hundred thousand on a new home can seem overw...

Can you afford to buy a home?

Tue, 21 Jul 2009 20:14:24 GMT

You're ready for homeownership, but are your finances? Find out if your financial situation is stable enough to purchase a home. Only fools rush in, and that’s certainly true when it comes to buying your first home. Take this quiz to help determine whether you’re in good enough financial shape to take on a mortgage. After each...

How an FHA loan works

Tue, 21 Jul 2009 20:14:21 GMT

An FHA loan is a great way for a first-time home buyer to finance a home. Since 1934, FHA loans have been helping people achieve the American dream of home-ownership. This type of loan offers better deals for people who may otherwise have trouble getting a desirable mortga...

How to buy an affordable home

Tue, 21 Jul 2009 20:14:14 GMT

Our three-step process can help you find the home you want in the price range you need. With today’s rising home prices, it can seem almost impossible to find an affordable home. However, by being resourceful and using the right tools, you should be able to find the home you’re looking ...

How to pick the right house

Tue, 21 Jul 2009 20:14:14 GMT

Is the house you have fallen in love with really the right house for your needs and lifestyle? Here are 10 criteria to consider. Shopping for a home can be a lot of fun, especially when many attractive homes are on the market. But before you make an offer on the one that’s captured your affections, consider these criteria: 1. ...

Home shopping made easy

Tue, 21 Jul 2009 20:14:14 GMT

There are five key factors to consider if you want to get the most out of shopping for a home. Home shopping can be fun, but it’s important to know what to look for. The top five points you should keep in mind when shopping for a home are: 1. Location, location, location. There’s good reasonin...

Finding a home: What to look for

Tue, 21 Jul 2009 20:14:14 GMT

There are steps to follow for finding a home. Finding a home is an exciting time. With a little preparation you can make it a rewarding experience. Following are steps that you can take when finding a home. Determine which housing type best sui...

Condominium or house: Which is right for you?

Tue, 21 Jul 2009 20:14:13 GMT

Condos and houses have their advantages and disadvantages. Use our chart to help compare your options. Be it in New York, Atlanta or Miami, the condominium market is thriving, with modern towers and low mortgage rates luring would-be home buyers with the possibility of building equity at rent-like pri...

Condominium buying basics

Tue, 21 Jul 2009 20:14:13 GMT

Understanding the differences of buying a condominium versus a single family home can help you through the process. Buying a condominium is very much like buying a house. There are a few minor differences that you should keep in mind, though. When buying a condominium, it is important to understand how a condo di...

Buying a townhouse or semi-attached house

Tue, 21 Jul 2009 20:14:13 GMT

Townhouses and semi-attached houses can be a great value. But you'll have to live at close quarters with the neighbors. If you’re thinking of buying a semi-detached or attached home, it’s important to understand the difference. A semi-detached, or "semi," is a house, usually two or three stories high, that s...

A beginner's guide to condominiums

Tue, 21 Jul 2009 20:14:13 GMT

A condominium is a unique style of home - a unit in a multi-owner property governed by a condominium association. It can be a great purchase. The condominium market has been rising steadily for the past few years. According to the National Association of REALTORS®, condo values rose more than 27 percent between 2000 and 2002, and the ...

New tax credit for home buyers

Mon, 06 Jul 2009 22:17:51 GMT

Economic stimulus gives first-time home buyers $8,000 bonus. If you're thinking about buying a home this year, you're in luck. The economic stimulus bill that President Obama signed into law this week contains a big tax break for home buyers who haven't owned ...

What is private mortgage insurance?

Wed, 01 Jul 2009 21:38:24 GMT

With PMI, you can get into the house you want without making a 20 percent down payment. Private mortgage insurance (PMI) is a way for buyers to get around the normal 20 percent down payment and still buy a home. It especially helps first-time homebuyers who don’t have proceeds from thei...

Private mortgage insurance (PMI)

Wed, 01 Jul 2009 21:38:24 GMT

Q: I've saved $20,000 toward a home. The home costs $200,000 and I've been told that unless I can come up with a larger down payment, I'll need to take out PMI. What is it and how does it work? A: As a general rule, lenders require those who take out a mortgage on a home with a down payment of less than 20 percent of the home’s appraised value or sale price to obtain private mortgage insura...

Private mortgage insurance

Wed, 01 Jul 2009 21:38:24 GMT

Q: I’ve saved $20,000 to put toward the purchase of a home. The home I’m interested in buying, however, costs $200,000 and I’ve been told that unless I can come up with a larger down payment, I’ll ne...

Cancellation of private mortgage insurance

Wed, 01 Jul 2009 21:38:24 GMT

Federal law may save you hundreds of dollars each year if you qualify to cancel your private mortgage insurance. If you put less than 20 percent down on a home mortgage, lenders often require you to have Private Mortgage Insurance (PMI). PMI protects the lender if you default on the loan. The Homeowners Protect...

Ask an Expert: Can I get a mortgage with a low down payment?

Wed, 01 Jul 2009 21:38:24 GMT

Q: I've heard that it's possible to buy a house with less than the standard 20 percent down payment. Is this true? A: Some lenders offer mortgages with down payments significantly lower than 20 percent. Market conditions, your credit rating and other important factors determine your eligibility for a reduced down...

What you need to know about your first mortgage

Wed, 01 Jul 2009 21:37:44 GMT

It's important to understand down payment and mortgage options before you apply for mortgage financing. Buying your first home is a huge milestone. Before you take this big step, consider the following. The bigger your down payment, the better The first rule about applying for a mortgage is simple: the...

First mortgage basics

Wed, 01 Jul 2009 21:37:44 GMT

Learn about down payment options and mortgages before buying your first home. Graduating from college and starting your career probably means your first mortgage is on the horizon. This is a huge financial milestone, so you should know what options you have when it comes to do...

Lease-to-own homes

Wed, 01 Jul 2009 21:37:44 GMT

If you understand the lease-to-own program, it can set you on the path to home ownership. Lease-to-own homes can help people who have had credit difficulties get started on the path to home ownership. If you understand what's expected of you and what your options are, a lease-to-own prope...

Top 10 house-buying mistakes

Wed, 01 Jul 2009 21:36:58 GMT

Learn from the mistakes of others, before you go house-hunting Buying a house is the largest investment most people ever make. Yet all too often it’s a decision made in haste without adequate preparation. Use our list of common house-buying mistakes to avoid cos...

The hidden costs of homeownership

Wed, 01 Jul 2009 21:36:57 GMT

It's important to understand all of the hidden costs involved with owning a home so that you are financially prepared. Congratulations, you’re about to become a homeowner. Buying a home is a wonderful and fulfilling step -- there is a sense of satisfaction in owning that roof over your head. If you were prev...

The first step in the home buying process

Wed, 01 Jul 2009 21:36:57 GMT

Contacting a real estate agent or a lender should be your first step when buying a home Before you begin the home buying process, you need to know what the first step is. Usually, it makes sense to contact a real estate agent or a lender as soon as possible. Contacting a real estate ag...

Steps to buying your first home

Wed, 01 Jul 2009 21:36:57 GMT

If your goal is to buy your first home in the year ahead, start saving and planning now. Have you been itching to settle down into your own home? Do you find yourself lingering in front of houses with For Sale signs, wondering if you can afford to buy them? Are you perusing the classifie...

How to win at home ownership

Wed, 01 Jul 2009 21:36:57 GMT

Smart homeowners plan ahead and play it safe to help ensure their investment will pay off. Homeowners intuitively understand that their home is both a place to live and an illiquid, long-term investment. Yet some housing markets are so volatile that buying and selling a home starts to seem...

Home buyer tax credit can be used as down payment

Wed, 01 Jul 2009 21:36:57 GMT

Home buyers can use $8,000 first-time home buyer tax credit for down payment, closing costs. A new federal government program will allow some home buyers to use the $8,000 first-time home buyer tax credit at closing. Prior to the new program, buyers could claim the credit on their 2008 or 20...

First-time homebuyer programs

Wed, 01 Jul 2009 21:36:57 GMT

There are many programs available to make it easier for you to become a homeowner. If you’re a first-time homebuyer struggling to come up with enough to make a down payment on a home, you should be aware of the following: FHA loans FHA loans are loans are obtained through the Feder...

First-time home buyer: Buying a house in a down market

Wed, 01 Jul 2009 21:36:57 GMT

A down market can be an opportunity for a first-time home buyer to get a great deal on a house. As a first-time home buyer, housing prices can seem a bit overwhelming. If the market in your area is in a down cycle, perhaps you are wondering if it is a wise investment to buy. In fact, a down mar...

Buying a home with a shared-equity mortgage

Wed, 01 Jul 2009 21:36:57 GMT

Shared-equity financing can make buying a home more affordable. Saving enough for a down payment on a home can be a challenge for many first-time homebuyers. And asking parents or family members for a low- or no-interest loan can be difficult because it means the...

Are you ready for home ownership?

Wed, 01 Jul 2009 21:36:57 GMT

Take our quiz to help you decide if you're ready to jump into the housing market. Homeownership is likely to be the largest financial commitment you’ll ever make. It may also be the smartest -- provided you’re prepared. Our quiz can help you decide if you’re ready to start house h...

A first-time home buyer can get a deal buying in winter

Wed, 01 Jul 2009 21:36:57 GMT

Buying a home when others typically don't can mean a bargain for the first-time home buyer. A first-time home buyer may assume that the best time to buy a home is during the spring and summer. This seems like it makes sense because so many people list their homes for sale during the warmer ...

10 reasons to buy a home

Wed, 01 Jul 2009 21:36:56 GMT

Here are 10 compelling reasons why anybody who can afford it should consider buying a home. Many people – especially singles and young couples who are just starting their careers – have mixed feelings about purchasing a house. They worry about getting tied down and taking on a lot of debt. ...

What is title insurance?

Wed, 23 Jul 2008 20:44:13 GMT

Title insurance policies protect against fraud or other 'defects' in property ownership. Title insurance is one of the most esoteric aspects of buying and owning a home. But that doesn’t mean the subject isn’t important or worth the effort to understand. Customarily, title insurance come...

Title insurance basics

Wed, 23 Jul 2008 20:43:56 GMT

Lenders require you to take out title insurance to protect themselves when they grant you a mortgage. Title insurance is a form of insurance that is designed to protect lenders and property owners from any potential hidden claims against a property. If, for example, you purchase a home and later some...

Mortgage closing terms

Wed, 23 Jul 2008 20:42:41 GMT

Understanding some key mortgage terms can help you when you're closing on a home. In order to make your closing go more smoothly, you should be as knowledgeable as possible. Knowing the meaning of the following mortgage terms can help. • Appraisal: A written analysis of the estim...

Why close at the end of the month?

Mon, 21 Jul 2008 22:29:57 GMT

The later in the month you close on a home, the lower your up-front mortgage costs may be. When you close on a home, you’re required to prepay any interest that will accrue on your mortgage from the date of the transaction until the end of the month. So the closer your closing is to the en...

What you need to keep your home loan on track

Mon, 21 Jul 2008 22:27:45 GMT

There is a lot involved in getting a mortgage approved. Discover what you need to consider to keep your home loan on-target. You’ve found the perfect house, shopped for a mortgage and chosen a lender. The rest is easy, right? Not always. Before your home loan closes, you will need to make sure all of the paperwork and lega...

The HUD-1 Settlement Statement

Mon, 21 Jul 2008 22:20:16 GMT

When you buy a home, the HUD-1 form is the final statement of all the charges involved in the deal. Shortly before closing on a new home, you will be given a Department of Housing and Urban Development Settlement Statement, also called the HUD-1. This is your final account of all of the costs and f...

The home closing process

Mon, 21 Jul 2008 22:16:24 GMT

Q: What’s involved in closing on a home? A: Closing consists of all the necessary final steps involved in sealing the deal on a home purchase. It includes: The offer to purchase There’s no foolproof way to make an offer that’s guaranteed t...

The final walk-through

Mon, 21 Jul 2008 21:27:30 GMT

The final walk-through is your opportunity to make sure nothing is missing or damaged before the deal closes. Shortly before the closing on your home, you will typically make one last inspection called a final walk-through. Your agent should help you examine the house. Verify that all items you have contract...

Settlement statement: Understanding the terms

Mon, 21 Jul 2008 21:24:31 GMT

The settlement statement you receive when you close on a home can be confusing. Understanding the following terms can help. Upon closing on a house, you will receive a settlement statement. This document itemizes all of the monetary transactions that are involved. However, it’s not always easy to understand. Here are defi...

Making a down payment

Mon, 21 Jul 2008 21:21:28 GMT

You will need a cashier's check from an acceptable source at closing. It is time for closing on your new home. You are supposed to show up with the down payment. Should you just bring your checkbook? How do you actually make a down payment? Most lenders expect you to ...

How to keep your loan from being derailed

Mon, 21 Jul 2008 21:20:15 GMT

Problems that can cause delays need not derail the entire loan process. A mortgage prequalification letter is a great tool for anyone who wants to borrow money to buy a home. But a prequalification letter is just the start of the home-loan process; most borrowers also fa...

Home inspections and certifications

Mon, 21 Jul 2008 21:14:36 GMT

Before contracting to buy a home, you should hire qualified third parties to inspect your home. Whole-house inspections Inspections are designed to disclose defects in the property that could materially affect its safety, livability or resale value. They won’t disclose cosmetic problems, so you...

Home appraisals

Mon, 21 Jul 2008 21:13:09 GMT

Lenders use home appraisers to determine the value of the home you plan to buy. An appraisal is a written estimate of a property’s market value completed by an appraiser shortly after you request your mortgage. Lenders use your appraisal to determine your loan amount. The market...

Closing-day nightmares: Don't let them happen to you

Mon, 21 Jul 2008 21:08:10 GMT

Surprises can be fun, but not when they pop up on the day your home is set to close. Find out how you can avoid closing-day fiascos. Moving into a new home is exciting. The closing process, however, can be intimidating, especially for first-time buyers. If you’re unprepared, your closing may get delayed or, in the worst-case scena...

Checklist: Steps to a smooth closing

Mon, 21 Jul 2008 21:04:19 GMT

This checklist can help you close on your home loan. As a first-time home buyer, you’re probably about to make the biggest purchase of your life to date. But how can you avoid unexpected complications between the time you find the home of your dreams a...

How to buy title insurance

Mon, 21 Jul 2008 03:40:27 GMT

What buyers and borrowers need to know about ownership protection. Not surprisingly, home buyers are often unfamiliar with title insurance, which protects lenders and owners from claims against the "title" or ownership of real property. Some of that unfami...