How to Buy Your First Home Without Using a Realtor

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Buying your first home does not have to be a stressful event. You should be able to buy your first home without having any problems and without using a realtor. This article will give you a step by step process on how you can buy your first home without using a real estate realtor.

Things You'll Need

• Credit report

Instructions

1. GET A COPY OF YOUR CREDIT REPORT.

   The very fist step to buying your first home without using a realtor is to get a copy of your credit report. Look over your credit report to ensure that there are not any errors. If so, take care of the credit errors before going any further in the home buying process. Make sure that your credit report is accurate and error free. You can get a free copy of your credit report online at annualcreditreport.com.

2. SAVING MONEY FOR THE DOWN PAYMENT.

   Immediately start a savings account for your down payment. Come up with a reasonable amount to put in the savings account each pay day. Most first time home buying plans require anywhere from 5 to 10 percent down payment. If you are buying a 100,000 home then it would be reasonable to say that you would need to save at least $5,000 to $10,000 dollars.

3. DECIDE ON THE HOME PURCHASE AMOUNT.

   Next, you will want to sit down and decide on how much that you and your family can afford to pay for a new home. Make a budget with an estimated monthly house note and decide if you can afford to pay it or not. If you make $50,000 a year then you might could afford a $800 a month house note compared to someone who only makes $25,000 a year. Sit down with your spouse and come up with a reasonable budget plan to decide on how much you can afford on a purchase price, a down payment and the monthly payment.

4. SHOPPING FOR A HOME.

   Next, check out your local newspaper, real estate papers and classified ads for homes for sale in your area. Or if you are wanting to build, you just go straight to the bank. Banks and lenders also have lists of homes that are up for sale. You can drop by any bank or lending institution and ask for a list of homes for sale or even homes that are in foreclosure or loan default for really great deals on homes.

5. SHOPPING AROUND FOR A MORTGAGE.

   Next, Once you have your budget and your savings where you want it, it is now time to shop around for a mortgage. Look for banks and lenders who have first time home buyer loan programs. The first time home buyer home loan programs are a little bit more easier to get approved for. Also look for lenders who deal with FHA and fannie mae. If you are trying to get a first time home loan, FHA and fannie mae will insure the amount of the loan and that will increase your chances of getting approved. Also when getting a loan through FHA and fannie mae, you wont have to have such a big down payment and they will also help you with the down payment.

6. BUYING YOUR NEW HOME.

   Once you have decided that you can afford a new home and you have saved your down payment and you have found the home that you are looking for, go to the bank or lending institution that you found the best mortgage at and ask specifically for a first time home buyers loan. You will be surprised at the loan programs and features that banks and lenders offer for first time home buyers.

Tips & Warnings

• If you are a first time home buyer and your credit is good or bad, consider going with a FHA, Fannie mae or Freddie mac first time home buyers loan. These type of lenders will insure the amount of your loan with the banks to significantly increase your chances of getting the home loan regardless of your credit.

• Be careful of lending institutions that want you to pay an above average interest rate. Always shop around and choose the best interest rate that best fits the first time home buyers loan.

Resources

• Question and answers for first time home buyers at FHA