Information for First Time Home Buyers

A modern style house in the Canberra suburb of...

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So you have decided that the time is right to buy a home. If you are a first time home buyer, you might be eligible for special assistance with this purchase. Of course, there are certain rules and stipulations that apply. As a first time home buyer, you are also typically entitled to a tax break from the federal government when it comes time to do your taxes. This could save you some serious money when you implement it.

It is important to do your homework before you take the plunge to become a home owner. Be sure that your credit has been cleaned up. Resolve any outstanding credit issues so that they do not provide a negative picture of your credit history when your credit report is pulled.

If you have resolved an issue but find that it is still showing up negatively on your credit report, write to all three of the biggest credit reporting agencies. Ask each of them to include a letter from you explaining the details of the incident. In this way, anyone who pulls your credit report will know that you have resolved the issue as well as your commitment to being financially sound.

Many people want to become home owners but have a difficult time coming up with the down payment that is often required. There are some programs that allow you to own a home without a large down payment. Other programs waive the down payment completely in an effort to open home ownership up to more people.

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First Time Home Buyers – What is Included in a General Home Inspection

Before purchasing your first home you will want to consider having a home inspection done of the house. A home inspection will allow you to get a better idea of what type of home you are purchasing and what condition the house is coming in. Home inspections are conducted by trained individuals who are qualified to give their opinion and advise on the structure of the home.

If you are considering having a home inspection done you need to know what is and is not included in the home inspection. Here’s a look at what the average home inspector will look for during the inspection and what they are not qualified to look for.

What is Included in a Home Inspection?

The basic home inspection will include a visual inspection of a number of areas within the home. General home inspection include an evaluation of the structure, exterior, garage, electrical, appliances, roof/attic, and plumbing. The home inspector will look for any outward signs of damage or potential problems that will either need to be fixed by the current home owner or you when you purchase the home.

What is Not Included in the Home Inspection?

A general home inspection will not include an inspection for asbestos, radon, wood destroying objects, mold, mildew and fungus, rodents and lead. A home inspector must be certified to look for these items and a general home inspector does not carry the certification necessary to look for these problems.

Understanding what a general home inspection includes will help you understand what information you will get from this type of inspection on your potential new home.

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Home Buyer Guide – Purchasing a Fixer Upper

House

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Reality TV shows and DIY shows have created an excitement and interest in purchasing a fixer upper home. What once was considered a poor home buying decision, is now viewed as a good investment. However, before you go purchasing your home you need to consider the risks you are taking with this type of home purchase.

Here’s a look at some of the risks that can come from purchasing a fixer upper home.

High Renovation Costs

Renovations and remodeling for a fixer upper can be extremely expensive. Most fixer uppers are older homes and the cost to renovate and remodel these types of homes can be through the roof.

Before you purchase a fixer upper make sure you consider the costs of the renovations and whether or not you will need a specialist to do the work or if you can do it yourself.

Underlying Problems

Many problems that the fixer upper has can be viewed from the outside. However, some of these problems can cause underlying problems that you cannot see.

Before purchasing a fixer upper home make sure you have a complete inspection of the home. A complete home inspection will allow you to get a better idea of all the problems and issues you are facing with this home purchase. Just remember a home inspection may not be able to find all the problems and you could encounter a laundry list of problems after you’ve purchased your fixer upper.

There are a lot of risks in purchasing a fixer upper. Just make sure you weigh them carefully before signing on the dotted line.

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How to Buy a Fixer Upper House

Furness Home Inspection 011

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Times are tough, but along with tough times come opportunity. Home prices are lower than they’ve been in years, interest rates are low, and bank repossessions seem to be the rule rather the exception. You want to take advantage of that. What can you expect, and what should you watch for?

You may walk into a house the looks okay on the outside, but on the interior, resembles a war zone. Carpets may need to be yanked out, walls may need to be fixed, but if the “bones” of the house (meaning the foundation, electricity, and plumbing) check out by a reputable home inspector you may have yourself a candidate for a full remodel. If the house only needs an update, you’re in for a partial remodel. The money needed for the project can be provided through a payday cash advance.

Partial remodels are often taken on by first-time home buyers that can put their heads together for a basic clean-up. These individuals shouldn’t tackle the total remodel scenario until they’ve had some remodeling experience under their belts.

Analyze the repair costs. Sometimes these costs are offered as part of the mortgage, bringing your monthly mortgage cost up. At other times, you’re expected to foot the bill on your own. Check the location. Does it have potential for future resale value? Is it on a safe street? What about the neighboring homes? Are they kept up? Is the home a three bedroom, two bath property? Anything less will be more difficult for you to sell later—unless you’re adding an addition to the house or creating two rooms where there was one.

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