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First Time Home Buyer Loan – Are You Ready?

Posted on | July 15, 2009 | No Comments

Getting a first time home buyer loan is a very important decision in any one’s life.  It is likely to be the biggest financial decision in your life and it is likely to change your overall lifestyle.  Many renters do not realize this, but being a home owner is a totally different ball game than renting and apartment or house.  Not only are their different financial requirements there are also many maintenance requirements that you never even thought about.  Just because mortgage rates are low does not mean that buying a house is the best thing for you.

There is very little doubt that now is a great time to be a first time home buyer.  Mortgage rates are extremely low, home prices continue to fall and there is an $8000 first time home buyer tax credit.  All of these aspects of the housing market make it very alluring to buy a home today but is it right for you?  Many renters think that the next step in life is to buy a home because everyone has told them that for years.  Most of our parents and grandparents have told us that buying a home is the best investment because homes always appreciate in value.  Oh really?  Ask the first time home buyer that bought that three bedroom home in Las Vegas, NV in 2006.  I bet they will tell you that homes don’t always appreciate in value.

One of the most important things to realize for first time home buyers, especially in this market, is that a home is always not going to be your #1 investment.  It is a place to live and possibly build relationships or a family but not always an investment.  Some people feel that having personal space and being able to spend quality time with their significant other in that space is very important.  If this is you, getting a first time home buyer loan might be right for you.

Other people enjoy the idea of knowing that when they get home they do not have to cut the grass or fix the gutters.  If you are not keen on maintenance or fixing things up, you need to realize you are going to either have to pay people to do this or you are going to have to suck it up and do it yourself.  This is something many renters don’t realize.  If your microwave breaks, your rental company comes in and installs a new one.  If you own a home, guess who gets to do that – YOU!

There are many pros and cons to both home ownership and renting.  The best thing to do is create a list of pros and cons for each and decide which one is right for you.  Do not let anyone tell you that buying a home is what you need to do.  Not everyone needs to own a home or get a first time home buyer loan; especially in this economic climate.

Category: First Time Home Buyer
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