The Most Common Questions that First Time Home Buyers will have

The Most Common Questions that First Time Home Buyers will have

Because the process of buying a home for the first time can be an extremely complicated process, all potential new home owners will have a variety of different questions that they will need answers to.  Here is a list of the most frequently asked questions that first time home buyers will commonly ask:

What is the Difference between Renting and Buying?

Quite simply, a home is an actual investment and renting is not.  By renting a home, you are giving away money every month that you will never see again.  On the other hand, if you own a home, you will be able to receive a variety of different advantages.  For example, as a home owner, you will be able to subtract the overall cost of your mortgage loan from the federal and state taxes that you file.  This will help you save money each year as the paid interest on your mortgage will provide you with a huge tax credit.

What is a HUD Home?

A HUD Home is a specific property that was previously owned by someone that possessed a HUD insured mortgage and was unable to make their monthly payments.  In cases like this, the mortgage lender will foreclose on the property and the HUD insurance provider will pay the lender the remaining loan amount that's owed.  At this point, HUD will become the owner of the home and try to sell it at the current market value as soon as possible.

If I don't have a Big Down-Payment and I've had Poor Credit Will I Still be able to Become a Homeowner?

Depending on your credit score, you might be able to receive a mortgage through one of the federal mortgage programs.  The first thing that you will need to do is contact a mortgage lender in your area that will be able to help with the different options that are available.

Do I Need to Use a Real Estate Agent?

While it's not absolutely necessary, using real estate agent is highly recommended.  Because there are many details involved in the home buying process, a real estate agent will be able to provide their expertise in certain financial and legal areas.  Additionally, a skilled, experienced agent will be able to provide you with intricate home buying details like specific information regarding the potential neighborhood and community that you will be living in.  If you enter the home buying process alone, you will inevitably be quickly overwhelmed by everything that is presented to you.  It's important to remember that a real estate agent will be doing the majority of the work for you.  Whether it's looking through classifieds to find the perfect home or dealing with mortgage lenders, an agent will always be around to provide you with the answers that you need.  A common misconception is that if you use a Buyer’s Agent that you as the buyer actually pays for it. This is not the case. The Buyer’s Agent is paid out of the seller’s proceeds from the sale. The Buyer’s Agent is there to represent your best interest in the transaction and negotiate on your behalf.