5 Reasons first time home buyers should use a Realtor

For First Time Home Buyers working with a true real estate professional comes with a lot of advantages over trying to go after it alone.
By working with a pro you'll get:

• Someone on your side protecting your interests and not the banks
• Someone with Market Knowledge who can help you navigate existing inventory and get you a good deal
• Someone with the industry contacts to help you find the right first time home buyer program for you and your family
• To save time! Avoid common newbie mistakes. Plus you'll be able to quickly focus in on properties fitting your unique criteria
• A 3rd Party Buffer when it comes time to negotiate. You won't want too many emotions involved here – having a buffer could make you lots of $$$

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The three most important words in real estate for first time home buyers

First time home buyers have to be wondering, “Is it a good time to buy real estate?”
The answer is always, “Yes, but it depends.”
it is always a great time to buy real estate but:
Not for everyone,
Not at any price, and
Not just any property.
In order to make that determination for YOU, we first must understand the three most important words in real estate.
If you asked almost any Realtor today, they would say the same thing they've been saying for years: Location, Location, Location!
Read the complete article

What's killing the dream of homeownership for first time home buyers?

Let's see you can own cheaper than you can rent, interest rates are the lowest in 50 YEARS, and home prices are ridiculously affordable.

So why aren't more first time home buyers buying?

Obviously the state of the economy is causing many families to think twice about the purchase of their first home, but how can anyone make an informed decision with all the misinformation being spread by the disconnected mainstream media and the so-called experts?
As first time home buyers it can be hard to separate fact and fiction.

Let's take a look at some recent "expert analysis" and compare it to what's really going on in most markets.

First there's this gem from the brain trust at Trulia.com:
“Today, many banks are actually less enthusiastic about approving residential mortgage applications, which has dragged out the home buying process,” he added. “Until a middle ground on lending practices can be met, many highly-qualified buyers may be forced to be renters by choice for now.”
The truth: There are dozens of loan programs for first time home buyers and they don't have to be "highly qualified". They do have to prove they can and will repay the lender (Hardly a "less enthusiastic" guideline)

And then this from the National Association of Realtors:
Walter Molony, a spokesperson for NAR, fingers tight underwriting practices as another suspect culpable for the upswing in rentals.
Lenders have only been willing to lend to creditworthy buyers.”

What's with those lenders? They only want to lend to people who will pay them back! Imagine that?

(Thanks to MReport for the "insights" from these "experts")

I don't know about other real estate markets but here's what's really going on in the Southern California Real Estate market, particularly Riverside and San Diego Counties.

• First time home buyers can get ZERO down financing with credit scores as low as 580

• First time home buyers in all of California can move in for as little as 1% with a credit score of 640

• Even non first time home buyers can move in with as little as 1/2% with a credit score of 640

• First time home buyers in Riverside County can get up to 20% in down payment assistance with a credit score as low as 600

• Veterans can still buy a home with ZERO down with credit scores as low as 600

• There is still a TAX CREDIT for first time home buyers in Riverside and San Diego Counties

The talking heads in Washington and the media haven't got a clue about the solution to the housing problem.
The solution will come from the bottom up not the top down.

If we can find ways to put more first time home buyer families in homes who want to and CAN make their mortgage payments (Yeah, that's important!), we'll work through the "shadow inventory", and won't be turning our neighborhoods into "detached apartments" by selling foreclosed homes to investors.

P.S. Did you know there are at least 10 programs available in our market to help first time home buyers purchase with little or no money down?

I would love to hear your comments, and feel free to share.

Zero down financing for first time home buyers at Fox Hollow by KB Home

First time home buyers who have decided that a new home in Murrieta is the best match for their family can now get Zero down financing at Fox Hollow, KB Home’s new home community in Murrieta.
Qualified first time home buyers may eligible for this zero down financing using the USDA home loan program. Unlike most first time home buyer programs which offer down payment assistance, the USDA program is truly Zero down and does not have mortgage insurance, which means significantly lower payments than other first time home buyer loans.Fox Hollow is one of the few new home communities in Murrieta to be able to offer this program because of its location in an unincorporated area of Murrieta and contrary to popular belief first time home buyers don’t have to “walk on water” to qualify.
Like all first time home buyer programs there are certain qualifications:
1. You can’t have owned a home in the last three years
2. You meet the income limits based on family size (a family of 5 can make up to $101,100)
3. You are able to qualify on based on your income and credit for the underlying mortgage (credit scores as low as 580 may be eligible).

For more information contact us or visit Fox Hollow and speak with Robyn Nelson or Manny Crawford, KB Home sales representatives. You can also call them at 951-677-4110..

The USDA home loan program is a great opportunity for first time home buyers who have made the decision that all of the benefits of owning a new home are just what they would like for their family.

Don’t forget to ask Robyn or Manny about the first time home buyer tax credit available at Fox Hollow.

For first time home buyers protecting your home is as important as buying it!

Buying your first home is the most important financial decision you will make in your life (so far).

Sometimes the costs of buying your first home will cause you to consider cutting corners on the costs. That's one reason why we recommend that you consider using down payment assistance even if you don't need it or don't think you will qualify for it.

One of the costs that should NOT be on your "chopping block" is home warranty protection.

A home warranty is a service contract that covers the repair or replacement of home systems and appliances that fail due to normal wear and use during the term of the Plan. The typical contract provides coverage for 12 months, is renewable, and coverage can be customized to meet the needs of each individual home.

Your home is most likely one of your biggest investments. Adding a home warranty protects this investment by keeping the covered home systems and appliances in good working order. It also provides peace of mind and budget protection for the homeowner, since repair or replacement of major systems or appliances in today’s dollars can easily cause financial strain.

In addition to budget protection, home warranties offer a convenient service solution should a system or appliance break down. This is particularly valuable for homeowners who are relocating to a new area. Most warranty companies take service calls 24 hours a day, 365 days per year, and can immediately dispatch a qualified contractor to perform the required service. With most claims, the homeowner pays only a nominal service fee to the contractor.

Although home warranty coverage can be obtained for most home systems and appliances, there are specific industry limitations of which the consumer should be aware. Most home warranty companies don’t cover general maintenance or cleaning, cosmetic defects, inadequate capacity, secondary damage, or service involving hazardous or toxic materials such as asbestos.

Always read the home warranty contract to determine the coverage, and make special note of terms and conditions.

When you purchase a home, you can feel confident choosing Old Republic Home Protection as your home warranty provider. We have been delivering outstanding coverage and service to the real estate community and consumers since 1974. Our goal is to provide the best home warranty coverage on the market at reasonable rates, protecting our clients from the high cost of repair or replacement of their home’s major systems and appliances

Thanks to Kathy Lansford of Old Republic Home Protection for the information! For more information contact Kathy: kathy@orhp.com

Does a first time home buyer need to worry about due diligence?

In most real estate markets across the country, first time home buyers have their choice among hundreds of foreclosed homes.

But what makes a foreclosure a good deal?  It's not just the lowest price because that could be a reflection of property condition. Nor is it the best terms, if the terms are "too good to be true" they probably are.

It's a good deal if, after doing your due diligence, you've determined it's the best home available for you and your family.

"Due diligence" is a term normally reserved for real estate investors, but first time home buyers should perform their own due diligence.

The first step in performing your due diligence is hire a good real estate agent. It's a good idea if the agent represents only you and not you and the seller. There's negotiating to be done and you want someone who has your best interest first.

After closing you're the one who will be living there and making the payments, so you'll want to make sure you know as much about the home and the process of buying it as you possibly can.


To get your Due Diligence Property Checklist - Click Here



Other Related Posts:

• How to get out of Credit Score Jail
•  First time home buyer loans not one size fits all
•  First time home buyers are following the smart money

Help on the way for first time home buyers credit?

It’s no secret that getting a first time home buyer loan in today’s market requires better credit histories than in the past.
But bad credit doesn’t have to be a life sentence, but it’s up to you to get your financial house in order to make that dream of owning your first home a reality.

Did you know that more than 30 million Americans are contacted each year by collection agencies regarding unpaid medical bills?

In June 2011, a bill titled the Medical Debt Responsibility Act was introduced to Congress by a bipartisan group. This bill would require the three national credit reporting agencies, Equifax, Experian and TransUnion, to remove medical collection records of $2,500 or less from credit reports within 45 days of being paid or settled.

Reasons to Support the Bill

1. Medical bills are sent to collections too quickly by medical professionals
2. Collections can have a major impact on interest rates
3. To improve credit scores so that Americans can buy homes and stimulate the economy
4. Medical bills are not considered a planned event and are usually a necessity or an emergency
5. Some medical bills are disagreements over co-payment
6. Some consumers may not be aware that the hospital or doctor turned the bills over to collections
7. Some consumers don’t know collections are on their credit report until they apply for a loan

To contact a first time home buyer specialist about your credit scores

So you want to buy a fixer upper?

To ask your burning question for a first time home buyer specialist

Other related posts:

First Time Home Buyer Myths - Busted!

Another First Time Home Buyer Myth - Busted!

And Another First Time Home Buyer Myth - Busted!

5 Things you can do today to become a homeowner in 2011

If you’re a first time home buyer who has decided that 2011 is the year you will make the jump from first time home buyer to first time home owner, then now is the time to get prepared.
Buying your first home is a process, not an event, so you have to have an action plan that will get you through this process with your sanity intact.
Here are 5 things you can do now to help you get ready for owning your first home in 2011:

1) Test drive the lifestyle - Owning costs more than renting and most first time home buyers find they will have to make some lifestyle sacrifices. It might be as simple as cutting out that daily mocha grande frappiccino or  packing a lunch three or four days a week,
Whatever those sacrifices may be, you might want to find out if you can adjust BEFORE you buy instead of after.
Test drive before you buys


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What does the debt ceiling crisis mean to first time home buyers?

Well we made it through the debt ceiling crisis with our collective “rear ends” in tact., but what does this mean for first time home buyers?

Did you know the debt ceiling has been raised 75 times since 1962? and the country has survived.

So what does it mean to you, the first time home buyer?

Well short term, interest rates dropped to an 8 month low on Monday on news of the debt settlement, but  interest rates change daily and as the stock market recovers, interest rates will
probably inch back up a little bit.

What’s the longer term impact?

Did you know that in the last 5 years interest rates have risen 1% within 60 days FOUR times, so this “window of opportunity” may not be open for too long.

The three main rating agencies  have indicated they will continue to rate the U.S. debt as AAA for now but with a negative outlook - a rating that indicates a possible downgrade.

A downgrade means higher interest rates.
The formula is simple: Higher rates = less demand = lower home prices.  
Even though home prices may continue to drop, an increase in interest rates will more than offset any reductions. It’s your money on the table

Did you know that a 1% increase in interest rates, will increase your payments more than $100? (based on a $200,000 loan)

I’m more concerned about the future of first time home buyer down payment assistance programs.
As the government looks for more ways to cut spending, the funding of these programs certainly has to be in their sights.

The #1 barrier to homeownership for first time home buyers is saving the funds for down payment and the continuation of these programs is vital if the economy and housing is ever going to make a full recovery.
Even if you weren’t planing on down payment assistance, it’s a good idea to take a look at it as an option.

Other Related Posts:

• First time home buyer loans are not one size fits all
• 3 Signs that say BUY to first time home buyers
• Is buying your first home a smart move?