With all of the incentives for first time buyers, it's no wonder that there has been a dramatic increase in buyer's coming into the real estate market!  Many are hoping to take advantage of the 8K tax credit being offered by the government.  The program, which expires in November, allows buyers to get an 8K tax credit on their next tax return. I am often approached by first time buyers who want to know where to start the buying process.  The first step in buying is finding the right people to help you with your transaction. When buying especially, a REALTOR can help save you time and money. Your REALTOR will navigate you through the whole process.  Ask to meet with them prior to heading out and looking at homes.  Make sure you "click" and that they are a good fit for you. It's important to find this agent by a referral.  Picking an agent by calling off of a sign or random website is risky.  Any agent fresh out of school can list a home and place a sign in the ground or create a website.  Is this someone you want to help you make the biggest purchase of your life?  Research the agent and ask for references.  A good agent will have these items readily available and offer them up usually before you ask for them!  Again, do your homework before making a huge mistake.  

Next, you need to know "the numbers" so that you can make a smart purchase and not get yourself in over your head.  The numbers are the figures you will need to know such as what you can afford, how much out of pocket you will be, and what additional costs are associated with buying a home. You should for sure set a budget and stick to it! A good agent will be able to direct you to several good lenders.  I always recommend to my clients that they talk to a minimum of 2 lenders and compare costs.  It's amazing how we will shop various stores to save a few bucks on a purchase, but time and time again, I have seen buyers take the first mortgage option offered and not question it.  The fees can vary greatly and after all, it is your money!  Shop around!  When you find the right deal, take that extra step to get fully approved on paper. On average, the first time buyer qualifies in the upper 100's to low 200's.  The competition for homes is heavy, so having an approval helps give you the extra edge over other buyers without an approval.  It shows the seller you are a serious buyer and gives them a "warm fuzzy" about working with you.

You should try and see several homes, but if you find one you like, don't be shy about making an offer.  Chances are if you like this home, someone else is either ahead of you or right behind you thinking the same thing!  When making an offer, you need to have a realistic approach.  Ask for comparables and recent market activity.  Contrary to popular belief, there is no set percentage to ask off of the list price.  Every listing has different circumstances.  In your offer, you may want to ask the seller to assist you with closing costs.  This will allow you to keep more money in your bank account for the improvements you may want to do to your home later.  Just remember, at the end of the day, like you, the seller has a bottom line too and if you can't make it work, move on.  Also, if you really like a place and it's realistically priced, don't loose it over a few thousand dollars.   Make a decent offer and don't look back.  Sometimes you have to pay a little more to get what you want.  At the end of the day, a few thousand dollars over 30 years does not dramatically increase your monthly payment. 

By following these basics, you can achieve the dream of home ownership!