First-Time Buyers

First Time Home Buyers of Walla Walla Real Estate

This is a great time to be a first time home owner. Not only does the 2009 $8000 tax credit offer such a great incentive but there are still so many homes to choose from and such greats to lock in. Why wouldn't anyone not want to buy their first home now!?

Start off right by getting pre-approved. This is different than just a pre-qualification from a online mortgage calculator, this is a lengthy process with your lender to determine exactly how much your budget can reasonably afford in a mortgage payment including all the extra costs such as interest, insurance and property taxes. Visit my Ruidoso real estate contact for more info on Mortgage insurance.

The following are some fees and costs you will want to be aware of when buying a home.

  You want to try and get the most competitive rate of interest possible in order to keep your rpayments down, and this means comparing interest rates and ensuring that the lender has passed on the recent base rate cuts to borrowers. Each lender can charge points or fees to buy down a loan so make sure your lender is up front and explains all the details and the long term results of each choice. Let the sellers know you have done your homework before you present an offer.

  Another upfront payment to consider is the set up fee or arrangement fee charges by the lender, which can vary depending on your mortgage size and the lender you go through. Make sure that you check both the interest rate and the arrangement fees, as some lenders fool consumers by offering low interest rates but then charge them a ridiculously high arrangement fee, which makes up for the lower interest rate.

  Be sure there is no pre-payment penalty as well. You don't want to have to sell your home and buy another down the road and have huge penalties for doing so.  In order to truly determine which mortgage is going to benefit you financially you need to make sure that you find out what the settlement fees is, and that you compare the interest rates and arrangement fees from any new mortgage lenders that you are considering.

  The amount that you have to pay on your mortgage each month will be partly determined by how long you take the loan over, with longer repayment periods resulting in lower monthly repayments. It is therefore important that you compare the available repayment periods from different lenders so that you know what your options are. Check out our home buying myths.

 When you compare lenders and interest rates you should remember that if you have bad credit or a low credit rating the rate of interest that you will be charged will most likely be a lot higher than the typical APR advertised by each lender. In fact, in the current financial climate there is a strong chance that if your credit is bad you may not find a lender willing to offer you a new mortgage loan at all.

But remember, for those that do buy a home in 2009, you are eligible for an $8000 tax credit! This is not a deductible but an actual credit to claim on your 2009 tax return. Contact our offices today to start looking for your new Walla Walla real estate! Learn more about buying in this market.


 

Walla Walla County Real Estate
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