What are some tips or general rules to prepare for first-time home buying?
Save, prepare and research. Bidding wars for homes are becoming more common as demand for houses continues to grow. According to a report in Ladies’ Home Journal, gone are the days of offering 20 percent under the asking price. In today’s market, it pays to go in with your highest offer which requires some careful financial planning. Some tips: * Have enough savings. First-time buyers make an average down payment of 12.5 percent. * Check your credit report for possible errors. * Apply for a preapproved mortgage so you know your spending limit. Generally, you can afford a home that costs about 11/2 times your annual income. * Research recent real estate transactions to find out how much buyers have paid for comparable homes in the area. * For assistance in buying your first home, contact your local Better Homes and Gardens Real Estate or GMAC Real Estate sales professional.
