Are you looking to buy a home? People are getting their foot in the door of the homeownership, even in this difficult housing market. Is it time for you to take that step, but you’re not exactly sure where to start? There are many questions that you’ll need the answers to before you are ready to find your first home and make an offer. There are several internet sites that offer many of the answers you need.

The HUD website is a great place to start. Many of your questions will be answered here in one convenient location. Click the Buy A Home link to get to the nine sections detailing the steps you need to take to purchase a home.

First: Figure out how much home you can afford. There are 5 key factors that will determine this: your credit rating, the amount you have for a down payment, your current monthly expenses, your income and the interest rate you will pay.

Second: Learn about your rights as a potential borrower. Hud is “requiring that loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs”. For most people, a home is the largest purchase they will make during their lifetime, and a home loan is by far the largest debt burden they will ever have. It’s important to know your rights so you can make informed decisions.

Third: Comparison shop for your loan. Different lenders offer a wide range of mortgage products. Interest rates, points and closing costs are very important. Your credit score and credit history will play an important role in the interest rate you are able to get. If you can, clean up your credit before you apply for a loan. Whatever your score is, though, get quotes from multiple lenders to find the best terms and the lowest costs for you.

Fourth: Learn about homebuying programs. FHA (the Federal Housing Administration) offers programs with easy credit qualifying, low closing costs and low down payments. These are especially beneficial for first time home buyers.

Fifth: Shop for your home. You can do this on your own but hiring a licensed Real Estate professional is highly recommended. Speak with a Realtor and discuss your wish list and what you don’t want in your home or neighborhood. Close to shopping, schools, away from the freeway, are there parks nearby? These are just some of the questions you need to ask. A Realtor can help simplify this process and save you time looking for that perfect first home.

Sixth: Make an offer to purchase the home. Your Realtor will help with this. The seller will almost certainly make a counter offer, and the negotiations continue from there. Make sure you are serious about the home and the offer as after a set time period it will become a binding contract.

Seventh: Get a home inspection. The home ispection is not an appraisal and the inspector will not be giving you a value for the home. The inspector will give you a report on the condition of the systems and subsystems of the home from electrical to the appliances. The ideal here is to find out if there are any major problems with the home before you buy it.

Eighth: Shop for homeowners insurance. The lender will require homeowners insurance, but don’t stop with any old policy that satisfies them. Find a policy that gives you the coverage you want at the best price. Do your homework up front.

Ninth: Sign the papers! If there’s something you don’t understand, ask before you sign. Your Realtor should be able to explain everything to your satisfaction. If you aren’t sure ASK!

The tenth step I have added. Move in to your new home and start enjoying your new life. You’ve taken a huge step affecting your family’s happiness and your financial future. Congratulations on owning your own home!

See beautiful Chula Vista new homes and check out current mortgage limits and rates.

We hear about historically low interest rates on home loans practically every week. Rates on 30-year fixed mortgages are well below 5% and still falling! Interest rates like these would have home buyers lining up to buy any available real estate in any other market. But now very few people are taking advantage of these low, low home loan rates. Why is that?

The biggest problem is that a lot of homeowners are upside down on their mortgages. Over the last few years property values have fallen significantly in every state. Many homeowners are finding that their homes are worth less now than when they bought them. Cash out refinances have exacerbated the problem, and sometimes even caused homeowners to owe more than the current value of their home.

The maximum loan amount is typicallly a percentage of a home’s current value – current value being the key word. It’s not possible for people to pay off their old loan with proceeds from a new loan with a lower balance. That’s true for a refinance or for selling one house and buying another. Unless a homeowner can come up with the cash to make up the shortfall, they’re stuck, no matter how well qualified they are.

In this economy the unemployment rate is high, but as concerning is the length of time it has been so high. Many homeowners have been out of work for an extended period of time. Many more are underemployed – working part time jobs or jobs far below their qualifications and income. In spite of this, a lot of them are making ends meet somehow. They’ve cut back on spending, stay-at-home moms have gone back to work, and they’ve started their own businesses. But they can’t show sufficient income to prove to a lender that they can make a lower mortgage payment than the one they’re making now. Changes in employment make it difficult to qualify for a loan even if the income is sufficient. Two years of steady employment in the same field is considered standard by most lenders. Borrowers who switched to a different field because they couldn’t find work in their chosen field, or borrowers who took a contract position won’t qualify until they have a two year history to show.

The standards for qualifying for a loan have become more stringent. The huge number of defaults can be traced back to lending practices that were too lenient. As a result, lending requirements have become much tougher. They want to see higher credit scores and lower debt ratios than they did years ago. The chances that a homeowner has a lot of cash in the bank and nearly perfect credit, after surviving employment problems, falling home values and other challenges, is slim.

First time buyers face all of these problems, except for being upside down on their mortgages. Unfortunately potential first time buyers with sufficient verifiable income, a hefty downpayment and great credit are in short supply. Fear of losing their jobs or of home prices falling further has detered many of those who actually are in a good position to buy a home. This isn’t a comfortable time for a beginner to take the plunge.

So those tantalizing interest rates that we keep hearing about in the news remain just out of reach. Something that’s technically true, but simultaneously too good to be true.

If you are one of those in a position to buy a new home in California, this is the time to do it. Once the market turns around, interest rates will rise quickly. San Diego new homes are sure to appreciate in the long run.

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Some may say that being able to buy and then afford a home in this market is an unreasonable goal. If you meet certain conditions you could be able to get into your first home even in this market.

Before taking this major step there are a few things you need to know. Even in the current real estate market, taking a few simple steps can put you on the path to successfully buying and keeping your first home.

Before you do anything else, you need to know how much you can realistically afford. Talk to a licensed and experienced Realtor in your area, or find an online mortgage calculator. It would be a frustrating waste of time to look at houses that you can’t afford, and it would be less than optimal to look at homes that are smaller than what you need. If you know what your price range is, you’ll start off on the right foot. A good Realtor who is familiar with your local market can help you find the best homes in your price range and help you through the loan application process.

Find out what your credit score is. If there are any errors, this is the time to fix them. If your score is low, start working to clean it up. Your credit score along with your available down payment will play a role in determining what interest rate your will have for your loan. Also the more you have available as a down payment will reduce your loan amount which in turn will reduce your monthly payment.

No and low down payments are available and require little if any cash, from the buyer. Today buyers are able to purchase a home with as little as four percent down. Compare that to the average down payment of twenty percent 20 years ago. Many factors will figure into how much you need to put down. Look for a special loan that allows you to buy with little or no cash down. No down payment loans can be challenging to find in today’s market. Again your circumstances will determine what you qualify for. If you are a veteran you can probably qualify for a VA Loan but low down payments in the form of FHA loans are also available.

The FHA Loan is a low down payment mortgage that requires only a 3.5% down payment. FHA loans used have fairly low maximum amounts, putting them out of reach of buyers in expensive metropolitan areas. Recent increases to more than $700,000 in some geographic areas have made them accessible to almost all first time home buyers. Many first time buyers have not saved up enough to make a 20% down payment, so an FHA loan with only 3.5% down is an ideal solution. Keep in mind though that borrowers who put down less than 20% are usually required to pay PMI (Private Mortgage Insurance) again depending on the loan program so keep in mind your particular circumstances always play a part in this process.

After a few years of making mortgage payments, your equity will have grown. Once you have 20% to 22% equity in your home, you should be able to cancel your private mortgage insurance and save that money each month. Think of it as a cost of getting your foot in the door of homeownership. It’s usually easier than saving up a 20% down payment.

Even if you could come up with a 20% down payment, you may choose to apply for a loan with a lower down payment. Then you could use the extra money for other things, like debt consolidation, your child’s college education, or future mortgage payments.

What does all of this mean to you? Use the resources available and you can be opening the door on your new home, even in this market.

Many homes on the market today are short sales, which take a long time to buy. Another option is to buy new construction, like these new homes in San Diego. Builders often help their buyers in obtaining home loans.

When deciding if you should buy a new home or resale home, you will likely hear a number of opinions about which one is better. Each home has their own positive attributes so it all comes down to individual needs. Before making a decision, you should look at the benefits of each to determine which home would be best for you and your family. The following outlines important qualities of new homes and resale homes which may help you make the decision.

New Homes 1) When purchasing a home that is to be newly constructed, there are many options you may be able to choose from that include: kitchen furnishings, type of flooring, color schemes, walk in closets, and much more. 2) New homes are constructed with new building materials so there will be less maintenance. This can include: aluminum siding, vinyl windows, and pressure-treated wood. 3) Many homebuilders will provide warranties in the event of a construction defect. For instance, if a crack in a wall develops, or the roof begins to leak, they will cover the costs of repair. 4) New homes will not contain toxic substances such as lead paint. 5) The appliances are new so they will be under a manufacturer warranty. They are also much more energy efficient.

6) New homes are built to accommodate the newest safety systems such as burglar alarms and surveillance cameras. 7) New homes are usually wired for the newest technology such as multiple phone lines, high-speed internet connections, and extra cable outlets They are constructed using materials that contain fewer health risks so they will meet current health codes. 9) New homes are more energy efficient. They have better windows, insulation, and more efficient heating and cooling systems. 10) The design is more modern. They may have more bathrooms, bigger bedrooms, and much more. 11) Everything in a new home is clean and undamaged.

Resale Homes 1) Because the homes are older, they are more likely to be located near metro areas. 2) For people who enjoy renovating and making improvements, resale homes are a good choice. 3) If you are looking for a large piece of property, you will likely find it with a resale home. 4) A resale home is usually cheaper than a new home. Depending on the state, resale homes may have lower property tax rates. 5) They are not usually a part of a new development community so you will not have to pay new development fees for such things as for schools, parks, and road maintenance.

6) If you like traditional designs and layouts, resale homes are a good choice. 7) Buyers are often able to negotiate a lower price with a resale home. The landscape is usually more natural and contains trees that are full grown. Most backyards are bigger and more private. 9) Resale homes are usually located in established neighborhoods. They will usually already have existing roads, amenities, parks, and schools. 10) Taxes and closing costs may differ between new and resale homes. For instance, sales tax is payable on new homes, while it is usually included in a resale home purchase.

As you can see from the above lists, there are many advantages to owning either a new home or resale home. The key is to make a list of what you are looking for in a home and what you plan to do with it in the future. Because buying home is a major life investment, it is important to consider both the pros and cons of both types of homes before making the final decision.

Buying a new home can be a very exciting time in a persons life. There are many considerations one should be aware of before taking the plunge into new homeownership. Before you make this huge life investment, you should ask yourself the following questions:

Can I afford a new home?

When buying new homes, you have to consider the financial implications of homeownership. You have to consider the mortgage payments, the down payment, fees such as closing costs and lawyer expenses, taxes, and other costs. Use an online financial calculator that takes your income and debt and calculated it to determine how much you can afford.

Does the new home meet my requirements?

Make a list of all your needs. Consider children and pets. Are there enough bedrooms and bathrooms? Is the yard big enough for a pet? Do you need a home office? If you have children, check to see if parks and schools are close by. Do you have to travel a long distance to work? What is the crime rate like in the neighborhood? How close is your home to supermarkets and malls? Is their a neighborhood development association that imposes strict rules?

Are there any hazards? Check to see if the home is in a high risk area such as flooding, earthquakes, tornados, and hurricanes. You may have to pay higher insurance premiums. Also, find out what home inspections are needed. What are the sale closing costs?

Closing costs are the costs associated with the sale transaction. This can include fees for legal documents, recording deeds, escrow fee, real estate commission fee, reconveyance fee, and Title Insurance.

Is the exterior of the house in good condition?

When assessing the exterior of the house, ask such questions as: What materials were used for the exterior? Do the trim or sidewalls require painting? Is weather-stripping installed? Do windows and doors have insulated glass or storm windows? What is the condition of the gutters? Is the foundation in good condition? Is the ground sloped away from the foundation? What material is used for the foundation?

Is the interior of the house in good condition?

Are there cracks in the walls and/or ceilings? Has the interior been recently painted? Are the kitchen cabinets installed properly? Do the doors open and close properly? Are there exhaust fans in the kitchen and baths? Is the interior trim in good condition? What is the condition of the door knobs and locks? Are there any visible structural defects? Is the attic area insulated? Are there any sloping floors in the home? Is there an attic fan for ventilation?

What is the condition of the heating, electric system, and hot water system?

Is the incoming electric service properly installed? Is the main electric panel easily accessible? Are there adequate light fixtures throughout the home? Are lighting fixtures installed at all exterior entrances? Is the number of electrical receptacles in each room sufficient for modern living? Are ground fault circuit interrupters (GFCI) installed?

What type of furnace or boiler is installed? (Hot air, hot water, heat pump, etc.) What type of fuel is used for heat? Does the home have central air conditioning? Is the size water heater adequate for your needs? Are there heating/cooling outlets in each room?

What is the condition of the plumbing system?

What is the source for water and sewer? (City, private, well, septic) What materials are used for water and sewer pipes? (Copper, PVC, iron, etc.) What is the quality and quantity of the well water? Do the plumbing fixtures work properly? Is the water pressure adequate?

Buying a new home is a serious life commitment with lasting costs. Before buying a home, make sure you consider all of the positive and negative aspects of homeownership so that your final decision will be the right one.