Tips for First-Time Home Buyers

Tips for First-Time Home Buyers

Buying a home for the first time can be a very overwhelming experience. After all, we were once first-time home buyers, and we remember buying our first home. Add our personal experiences to the experience we’ve had helping first-time buyers, and you’ve got quite a bit of useful information. So, we’ve made a list of tips for those of you considering buying your first home.

1) Weigh the pros and cons of renting versus buying a home. Since there is a ton of information available on this point alone, we’ll only do a quick run through of things to consider. Remember that when you rent, you typically only pay the bills, the rent, and maybe renters’ insurance. When you buy a home you can expect to pay the bills, the “permanent rent” (A.K.A. “mortgage”), homeowners’ insurance (and, depending on where you live, you may need to get additional insurance policies for your home), and property taxes. Also, you’ll have closing costs to pay when you buy the home, and these costs will be at least four or five thousand dollars (even if you have a $0 down payment). Plus, you’ll need to pay for the upkeep of the home and any needed repairs.

2) A non-financial point to consider is how long you plan to live in the area. If you plan on moving in the next couple of years, you should probably think about renting. If you plan to stay for three or more years, you may want to consider buying.

3) Use your current budget to determine how much you think you can pay for the mortgage every month. If you know that the amount you pay for rent now is about as much as you feel comfortable paying, then make a note of that. When you talk with a home loan officer, he or she will probably ask how much you want to pay every month for your mortgage.

4) Talk with home loan officers to find out what size loan you’ll be able to get. There is no way to know what price range you’ll be qualified for until you talk with lenders. And, be sure to talk with several loan officers (we recommend talking to at least three). Since you’ll be a first-time home buyer, you’ll find a range of possibilities for financing. Some home loan officers even specialize in helping first-time home buyers. Sometimes first-time home buyers are pleasantly surprised at how much a lender is willing to lend. This is why I said for you to find an amount you’re comfortable with before talking with the lender. If you’re not comfortable with the monthly payment you’ve received, be sure to talk with your loan officer so that you don’t spread yourself too thin!

5) Be sure to get a “good faith estimate” from the loan officers that breaks down all of the costs of your mortgage. Looking at these estimates can help you to compare loans. You can also use the estimates to work in the estimated mortgage payment into your budget. Would you be able to comfortably afford your mortgage payment?

6) Be sure to think about your needs versus your wants. Although you may want a house with three bedrooms, two baths, 1800 square feet, and stainless steel appliances, remember that this is going to be a first-time home. Depending on where you live, you may not be able to afford everything that you want. So, don’t get discouraged if you can’t find the home of your dreams – you can work up to that home in the coming years. For now, you may find a two bedroom townhouse in a great neighborhood with other first-time home buyers like yourself.


About the Author: Lee Keadle is a full-time real estate agent in Charleston, SC. He works with a team of three agents to give buyers and sellers the best services possible. They specialize in Mt. Pleasant real estate ( http://www.searchforcharlestonrealestate.com/mt-pleasant-real-estate.php ) and James Island real estate ( http://www.searchforcharlestonrealestate.com/james-island-real-estate.php ). Their website is http://www.SearchForCharlestonRealEstate.com

Start Building Your Savings

Where To Start With Building Savings
By Jennifer Tannehill

When I began getting my finances in order, I couldn't wait to get started but I was perplexed. Where should I start? Some experts say, "Pay yourself first" meaning retirement, some say get your debt paid down, while other suggested beginning with an emergency fund. And, those are just the top three, there are many other schools of thought. I asked around. No one agreed on any one method. I read Suze Orman's new book Women and Money. It was a great book, but it could not answer this question to my satisfaction.

I did a lot of research on the net and I came up with my own plan. Here are the steps and my reason for putting them in the order that I did.

1. Start a small emergency fund. I will start by paying the minimums on my credit cards until I have socked away around $500 to $1000. I think this is the best first step because without some free flowing cash I will have no choice but to use plastic if I have any unexpected expenses. I am limiting it to just $1000 at most because I figure that would cover an ER visit, a replacement appliance, or car problems. I just hope I don't ever have all three at once!

2. Begin paying off the credit card debt. One note here, if you are already paying into retirement keep doing so unless you are not able to pay off your existing debt. In paying off debt, almost everyone agrees- you must pay more than the minimum balance due on your cards. However, there are two methods to choose from. The first is to pay off the card with the highest interest rate first. This makes sense because that is the one that will end up costing the most in finance charges. But, if you are anything like me, you like to see progress. Another way to go is to throw the most money at your smallest debt first. That way you see $0 balances sooner giving you a little pick-me-up on the long road to debt repayment. Whichever you choose, pay the minimums on all but the card you are trying to pay down first. Put more money toward that card, but once it is paid off keep putting the same amount toward your debt. In other words, if I am paying $200 on my high rate card and I pay it off, I am to put that money toward the next card. Then repeat the same process until all the debt is paid.

3. SAVE. It is a good rule of thumb to have several months of income saved up in the event that you are laid off, become ill, or cannot work for one reason or another. At this point you can start putting more money into your emergency fund. Once you have that built up, begin saving for retirement if you are not already doing so. How you choose to save is up to you. Step three really requires its own article. Briefly, if you get an employer match on your 401K at work fund it to get the full match, hey, that is FREE money. If you don't get a match or once you have funded up to the match, try to max out an IRA. The type and amount you can invest depend on your income and your age respectively.

I hope this has given you a starting point in getting your finances in order. When I began looking I just wanted a simple plan to follow. I ended up having to make my own. Try it, tweak it, but do something. The worst mistake you can make is to do nothing. Know that no matter where you begin, taking small steps toward dealing with debt and saving will eventually turn into a change for the good.

Jennifer Tannehill maintains a personal finance blog at http://picturewealth.blogspot.com
Please check it out!

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Debt Consolidation Tips

Debt Consolidation Tips: An "All in one" Guide!

By: Marsha Claire

A Debt consolidation loan is a loan used to repay several other loans or other debts. A Debt Consolidation Loan is a low cost loan secured on collateral in the form of any securable property, your home, your vehicle or any valuable asset. Debt consolidation loans consolidate all debts incurred through personal loans, credit cards, overdrafts, or any number of unpaid bills that have built up over time. These loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest. A debt consolidation loan can reduce both your interest costs and your monthly repayments, putting you back in control of your life.

Debt consolidation solutions are practical means for eliminating credit card and other high interest debts, and getting your financial health and future back on track. Being concerned about debt 24 x 7 is extremely stressful, both on you and your family. So take a few minutes right now and educate yourself about your options.


1. Go with a debt consolidation company that has a good reputation.

Don't assume that every non-profit company is necessarily going to look out for your interests more than for a profit. Shopping around will give you the means to decide on the one that best suits your circumstances and your budget. Spend time researching different lenders and get quotes from a handful before deciding on one.

2. Do the math yourself.

Take the time to work through the expenses yourself and see how much you will be paying, how long it will take to pay off the loan, etc. Look for hidden costs, creditor charges, etc. Many lenders add payment protection insurance to their loans without the borrowers' knowledge, which is often more expensive than those available elsewhere. People keen to consolidate their debts, take the first opportunity available, unaware of lower rates and other available options.


3. Is it cost effective in the long run?

Paying off an existing debt may incur charges for early settlement and there may also be a fee for arranging your consolidation loan. A debt consolidation loan should be cheaper than the individual loans and debts since that's its purpose. Otherwise how is it different from any other secured loan? Also, by taking a new debt consolidation loan, you will be extending the period in which you are paying off debts - and that might mean a greater interest cost in the long run. So read the fine print on your credit agreement statement before signing it.


5. Interest rates:

Make sure you understand the difference between variable and fixed rate loans. If you sign up for a variable rate loan, you may get a lower rate initially, but within a few years it may go up. On the contrary, a fixed rate option does not fluctuate with any changes in rates. However, you do not gain when the interest drops either.


6. Debt Consolidation counselling:

Debt consolidation with debt counselling can provide you with expert debt advice for financial planning. This would help you sort out your present debts as well as prevent you from getting into future debt. Debt counselling services can talk to your creditors about reducing your interest rate, eliminating late fees, altering repayment options and extending your loan term. Look up an agency that is the member of the National Foundation for Credit Counselling (NFCC) or the Association of Independent Consumer Credit Counselling Agencies (AICCCA).


Secured on your collateral low interest debt consolidation loans can sweep away the pile of repayments to your credit and store cards, loans and replace them with one, low cost, monthly payment - one calculated to be well within your means. Never take a loan that is over the top, take something that suits your needs.


It has been found that a significant number of residents are not aware of the benefits of the debt consolidation options and are suspicious about how it works. There is a need to increase the awareness of the debt consolidation solutions and evolve new varieties and features for debt consolidation loans. There is a great potential to increase the benefits of debt consolidation loans.

Author Bio

Marsha Claire is offering loan advice for quite some time.To find Adverse Credit debt consolidation, UK Debt consolidation Help, Fix Your debt Repayment, Debt consolidation tips visit www.fixyourdebts.co.uk

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