So you want to buy a fixer upper?

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

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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?