| First time buyers can find it confusing to enter the | | | | Most people these days browse the Internet first |
| world of house buying. The first thing you think you | | | | and get a feel for neighborhoods, prices and what |
| should do is to find a house, right? Wrong. If you | | | | type of house they would like. Once you have found |
| pursue this route, the house could be snapped up | | | | the home you would like to buy, in a price range you |
| from under your nose while you struggle to find | | | | can afford, contact the real estate agent of your |
| financing. | | | | choice and ask for a viewing. |
| Consequently, even if you are not in the market for | | | | If and when you find a house that you like, you may |
| house buying yet, you may wish to meet with a | | | | decide to put an offer on it. This will require a |
| bank or a mortgage broker (called the lender) and | | | | modest down payment, to show your good intent. |
| find out how much money they will assess that you | | | | Now at this time, there may present a situation |
| can borrow. If you have a regular bank account, try | | | | which many first time buyers are not prepared for. |
| the bank first. If you get stuck for financing, | | | | If the house is listed to represent true market value, |
| sometimes a real estate agent can advise on brokers | | | | then it would follow that you put down your 5%, |
| in the area. | | | | they add their 95% and the costs are met. All that is |
| Probably the single most important thing in getting a | | | | left is for you to pay the legal closing costs, which |
| loan is a credit rating. If you have no credit history | | | | are fairly standard and can usually be estimated |
| then you can go to a bank and ask for a secured | | | | beforehand. Simple. |
| credit card. They will ask you for a deposit of say, | | | | Simple - but: a problem will arise if the house |
| $500.00 and this will be untouched by you as it will sit | | | | inspection turns up some damage in the structure or |
| there to cover any unpaid balance to the bank. | | | | condition of the home. They may say that it detracts |
| If you have a credit rating with a few bleeps on it, | | | | from the value if you have rot in the garage, and will |
| try and sort them out or have a good explanation as | | | | deduct $4,000.00 from the amount they will give you. |
| to why they are there, otherwise you will not be | | | | You are now short $4,000.00. Your real estate agent |
| buying a house. | | | | will try and help you over this one by approaching |
| Once you have a current credit card, use it every | | | | the seller to see if they will repair the garage rot in |
| month and make a payment on it every month, | | | | order to make the sale. Or perhaps they may be |
| always on time. After your visit to the bank, you | | | | willing to pay your closing costs so that you can 'top |
| may be surprised to find that you do not have | | | | up' the loss created by this garage rot. |
| enough income for a very big loan, or you may find | | | | The seller will not want to lose the sale either, so he |
| that if you save a little more down payment you will | | | | or she may be willing to help you financially so that all |
| be ready to start looking. | | | | parties can complete the sale. Your real estate agent |
| Some lenders will allow you to buy a home that has | | | | will negotiate a deal for you, if it is at all possible. |
| a suite already in place and they will count in part of | | | | If you find all this confusing, think of it as a learning |
| the rental income as your income (usually only a part | | | | curve - it is a lot easier the second time around! |
| of it though!). | | | | |