Seven Tips For First-Time Homebuyers (NAPSA)—If you’ve ever thought about owning a home, now may be the timeto take action. Lowerinterest rates combined with a large inventory of homes in most markets across the U.S. may translate into a good opportunity for buyers in negotiating the termsof a sale with a seller. The homebuying process may seem daunting to someone who has never purchased a home before. But through homebuying educational seminars offered in your community, and with the assistance of an experienced loan officer, a first-time homebuyer can obtain a better understanding of financing options, leading to a more positive homebuying experience. “Whether you’ve been dreaming of owning a homefor years or you’ve just decided it would be a smart financial move to make, your first homebuying experience will be a memorable one,” says Jim Ferriter, executive vice president for GMAC Mortgage. “It’s important to learn about your financing options in order to find the mortgagethat’s right for you.” Ferriter offers the following tips for first-time homebuyers: 1. Educate Yourself About the Mortgage Process—By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It’s important to learn about different types of mortgages, how much you can afford, how your credit impacts yourinterest rate and the benefits of homeownership. A mortgage tutorial is available at http://smartedgebyg mac.com, which breaks down the homebuying process into easy-to- understand steps. 2. Save Just a Little Bit More—It’s not only important to save moneyfor the down payment and closing costs, but it’s important to factor in someof the other costs of homeownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that first-time homebuyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses. 3. Check Your Credit—An individual’s credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a free credit report from any of the three credit-reporting bureaus: Equifax, TransUnion or Experian. Carefully review your report and contact the creditreporting bureaus to correct any inaccuracies. 4, Shop Around for a Mortgage Lender—As you start thinking about and preparing for the homebuying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process is new, it’s easy to go with thefirst lender or loan officer you meet. Instead, take your time and shop around. Start by asking friends, co-workers and family members for recommendations. When you’ve identified two or three loan officers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you. 5. Get Preapproved—Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a preapproval credit decision. A loan officer will review yourfinancial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you maybe able to qualify, and, if qualified, “preapprove” your mortgage before you’ve found a home. Armed with a credit preapproval, you can start searching for homes with a muchbetter idea of your price range, and in turn save time as you will know the right homes to focus on. Obtaining a preapproval may offer more confidence and certainty to homesellers in your ability to purchase the home. 6. Don’t Be Afraid to Ask Questions—Once you’ve found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional should do in the homebuying process. Throughout the process, read all loan documents carefully and involve an attorney, if necessary. 7. Inspect—Before you com- mit to purchasing a home, don’t forget to hire a licensed home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and long-term home maintenanceissues. For more information about the process for buying your first home, contact an experienced loan officer at GMAC Mortgagebycalling (800) 888-GMACorbyvisiting http://www.gmacmortgage.com.
