In October 2012, home sales in California were up 25.2 percent from October 2011, hitting a five year high for that month. The California Association of Realtors expects home prices in California to continue rising in 2012 and 2013. When are you are looking to purchase a home and are doing a property search, there are several things you will want to consider, especially if you are a first time home buyer. First time homebuyers can find the experience of searching for and buying a home quite thrilling. However, it can also be quite challenging and very nerve wracking. A little research will help the process go more smoothly.
First of all, you need to establish a firm budget. You will to figure out how to obtain a mortgage and what kind of down payment you should put down. In order to discuss different lending options and figure out how much of a mortgage you can afford to take out, you will want to consult home loan lenders. You might consider looking into a first time home buyers program, which can also include down payment assistance programs. If you are a veteran, you may qualify for special Va home loans. It is important to note that you will also need to set aside money for the additional costs associated with purchasing a home, such as closing fees. Closing costs include origination fees charged by the lender, title and settlement fees, taxes, and prepaid items such as homeowner’s insurance or homeowner’s association fees.
If you are purchasing a home that requires a significant amount of work or fixing up, you might consider FHA home loans. FHA home loans, also called a 203(k), are loan for borrowers who need extra cash to make repairs to their homes. Overall, FHA home loans can be a great option. You will want to do a bit of research to find out if you qualify for FHA home loans.