Buying Your First Home

For all of you renters out there who thought it was too late and that housing prices had passed you by...............there is hope out there after all. Even though housing prices are still higher than they were at the start of the decade, the recent price adjustments along with the revised guidelines for the FHA loan limits has brought you the ability to buy up to a $750,000 house with as little as 3% down AND the down payment can be a GIFT!

There are bargains to be had, with a lot of bank owned properties and a lot of distressed sellers listing their homes for less money than the bank is owed (known as a Short Sale). While the market is far from settled, if you look at your home purchase as a HOME rather than as an investment, you will be positioned for what every homeowner eventually realizes. The longer you own your home, the more likely the purchase will be a wise investment. While there may be peaks and valleys to your home's value, overt the long term the value almost always rises. There is after all only so much real estate. And Orange county real estate still comes at a premium.

The important things to remember are that you have plenty of time. The market is still unsettled. The first thing you'll need to do is get yourself prequalified. There are plenty of sources available to do this. To get an idea of what you qualify for, use this handy little worksheet. There are plenty of places available online to get your credit score for free. The online version of your credit score may not be exactly that which the lenders will use, however, so you may really want to consult with a lender who can assis you in getting a free credit report and prequalify you for a loan at the same time.

The next step is to identify the area in which you'd like to buy and find free listings of homes available for sale and most definitely work with a buyer's agent that will represent YOUR interests in the transaction. You will need help analyzing the local market, negotiating the RIGHT price, and providing you with the protection that only years of experience can provide you. The next step is one of the most critical, especially if the property you select is bank owned or a short sale............insist on a full property inspection. Even though most of these homes are sold as is (with the seller not paying for repairs) you still need to assess the overall condition of the home, and determine whether after all of the needed repairs, is it still a good bargain?

For any and all real estate related services, contact a local Orange County Real Estate specialist who will serve your best interests.