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Buying Your First Home 
First Time Home Buying

Do you need a home loan ?

Buying a home is an exciting time for most people. The thrill of looking for the right house and property coupled with the joy of a new journey ahead is a positive experience to be remembered forever. But the task of house hunting is not all fun and games. Home loans are usually required, as most people cannot possibly buy a home with spare cash. The majority of the population uses a down payment coupled with home finances or more traditionally known as mortgages.

Before getting caught up in the full excitement of purchasing your first home, it is important to review your home finances and determine what you are capable of spending. Searching for a home can be a long tedious task after the excitement wears off and you want to be able to use your time wisely.

One of the first things to do before starting your house search is sit down and calculate your expenses against the money your earn. Assess how much you will have available for a monthly payment along with the amount you are willing to use as a down payment. Decide how much you can comfortably finance because the smaller the home loan, the sooner you will own your home outright and free up your monthly payment for your savings account.

When you finance your home, most of the monies in the beginning go to interest, so the more you use as a down payment and the less you home finance is to your benefit. You should also start talking to different lenders to see what options are available for home loans. The most obvious place to start is the bank with which you deal on a regular basis and to whom you are known. They will help you to set parameters for your home finance and will give you an exact amount of what they are willing to provide as a home loan.

If the bank is not an option, there are many mortgage brokers or private home finance lenders available. Just remember that a legitimate home finance specialist will never ask for money up front. Their fees are included in the amount owed when the house purchase closes.

Other options for home finances are parents and family. New couples starting out their life together may have had the luxury of a large down payment from the money received from gifts at their wedding. This will help them to move forward with a smaller home loan. They may even be able to obtain home financing from older family members who are in a position to help them financially.

In determining the amount that is required to finance, many people forget to include closing cost expenses. Home finances should include local property taxes, lawyer's expenses, lender fees, home inspection and appraisal charges, sales taxes where applicable, home insurance and any immediate renovation expenses.

The key to budgeting and determining the amount to home finance beforehand is to stay within your pre-determined numbers. Many people get out looking at homes and very quickly choose something that is beyond their means. Not only is it a good idea to assess the amount to finance, but also, decide what type of house is required. Know how many bedrooms you need, if you prefer a large back yard, how many bathrooms, and in what neighborhood you wish to live. Understanding your requirements in advance will allow you to obtain a smaller home loan and will prevent you from being disappointed when you are refused a higher home financing.

As a final word, do try to have fun when choosing your first home. Once the financing is in place and you are secure in the knowledge that a home loan is a reality within your reach, get out there and find the nicest home that meets your fancy. The hardest part of the process was most likely sourcing the home finance so now you are entitled to some fun.

First Time Buyers ???
How Much Can You Afford?
The Anatomy of a Mortgage
The Two Basic Types of Mortgages
Additional Types of Mortgages
The Lender: Bank or Mortgage Broker?
Loans for Sale
Shopping for a Loan
Finding your loan online
Consider a Mortgage Pre-Approval
Six Strategies for Saving Money on Your Mortgage
The Down Payment
Special Loans for Everyone
The Tax Implications of Buying Your Home
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