Money Saving Tips for First-Time Homebuyers

Many people who didn’t take advantage of the first-time buyer tax credit are still planning to purchase a home this year. Therefore, we’ve got some money saving tips for first-time homebuyers who want to save money since they missed out on such a big tax credit.

A few simple, yet smart steps in the wealth of opportunities in today’s marketplace can save first-time buyers thousands of dollars. So, here are some ways to save:

* Don’t buy a home if you’re not planning to stay – Many people find it hard to commit to staying in one place for more than a few years. So, if you’re one of those who find it hard to commit, owning a home may not be for you just yet. You could end up losing money if you sell sooner than a few years.

* Begin with your credit – Most homebuyers need a mortgage to purchase a home. Therefore, you should make sure your credit is as clean as possible. You can check your credit and get copies of your credit report to see what you need to do to make your credit score more appealing to lenders. If you preview your credit report a few months before you begin your house hunt, you will have time to fix any problems or errors on the report.

* Select carefully between rate and points – When selecting a mortgage, you will usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower rate. If you plan on staying in the home more than three years, taking the points could be the better deal. In the long run, a lower interest rate will save you money.

* Using a home inspector – No one wants to buy a home that has a lot of potential problems. A home inspector will give you a clear outlook on what you are buying. A home inspector report will also help you back out of a deal if the house has major problems. It can also help you negotiate the home price when accounting for needed repairs.

* Professional help – Although you can find unlimited access to home listings online, many home buyers find it more helpful when using a professional real estate agent. A professional agent will help you with strategies while bidding on a home and they have your best interests in mind.

Purchasing real estate is always an excellent investment decision and buying a property in the right area will make all the difference. You can find several great communities within Queens County that are worth your visiting.

Homebuyer Tips

Are you interested in purchasing a Queens home?  These homebuyer tips will help you in the home buying process:

1. Do Your Homework.  Compare houses of comparable amenities and size in the neighborhoods you are interested in by visiting websites such as trulia.com or zillow.com.  It's important to remember that the prices listed on these sites should be used for reference only, since they can be a few months out of date.  Your Realtor® will be able to get you the most recent figures for houses in a neighborhood.

2. Credit is King.  Nowadays, in order to get a good interest rate, you need a credit score of more than 700.  You will want to go over your credit report to fix any mistakes there may be that can have an adverse affect on your credit score.

3. Get Your Credit Score Free Online.  Go to http://www.annualcreditreport.com/ for your free credit report from one or all of the credit reporting agencies.  This is the only federal government sanctioned site for an absolutely free credit report.  However, you will pay a small fee for your credit score.

4. Consider a Lower Bid.  Since list prices are based on contracts that were placed approximately 3-4 months ago, you may want to consider offering 10-15% below the list price.  The current market value may be lower than those in place at the time of the contract.  Again, your Realtor® will be able to get you the most recent figures for houses in a neighborhood.

5. Get Pre-Approved, Not Pre-Qualified.  In the past, you only needed to be pre-qualified to have an idea of what your price range would be before you looked at a home.  However, times have changed.  Being pre-approved will show you as a serious buyer, help you negotiate your purchase price and let you know exactly how much you have to spend.  Sellers are more confident in a buyer who already has a loan.

6. Consider New Construction.  February marked the fourth month in a row that sales of newly constructed homes fell.  So, there is room to negotiate on prices.  You should always check out the reputation of the builder before you buy.

7. Get an Inspection Report.  It doesn't matter whether you are buying an older home or a brand new one.  You will want to get an inspection done before you buy.  Just because it is a new home, doesn't mean that it will be problem-free.

8. Always Read the Title Report.  You will want to make sure that any new additions are fully permitted with the appropriate agencies.

We hope these homebuyer tips help you out.  If you are looking for a Queens home, contact Queens Realty today!