At some point in your adult life, you are likely to
purchase a house of your own. Whether you are sick of renting, or you have
decided to settle down and start a family, purchasing your first home can be an
exhilarating and nerve-wracking adventure. In researching the best
practices for new home buying, we decided to give you three of the most
Our first suggestion is to save, save, and save some more.
The idea behind this is to enable you to make the largest initial down payment
on your new home as possible. We know how difficult it can be to
save, but this could save you thousands of dollars in the long run. Wouldn’t it
be great to be able to save thousands of dollars to use for your own ends,
instead of paying it to some faceless bank in interest payments?
Secondly, try to educate yourself about the types of
financing available. Shop around, or speak with a mortgage broker who can act
on your behalf. In my opinion, your best bet is to lock into a
fixed rate mortgage. A new home is very expensive, and you are likely to be
short of cash for the first couple years. A fixed rate mortgage
will provide you with the peace of mind that comes with knowing exactly what
your mortgage payments will be each month. Remember, you can always renegotiate
the terms of your mortgage at a later date. Ensure you have the
stability you need to get off on the right start.
Lastly, be sure you have a proper home inspection done
before you complete the transaction. If you feel the price of the house you are
about to purchase is too good to pass up, it is probably is too good to be true.
It is worth taking the time to ensure things are done properly. If you
have to move fast for fear of missing out, make an offer, but ensure that your
offer is conditional on upon a successful home inspection. Far too
many first time home buyers have gone broke fixing repairs that should have
taken care of by the previous owner. And, please, do yourself a favor and find
an independent home inspector that doesn’t have a relationship with the real
Seymore Hennigan has worked in finance for many years. When he is not
crunching numbers or advising his family and friends on investments, he writes
freelance articles for mortgageguide101.com – an independent mortgage guide
filled with extensive information about
mortgages and more.