Where to get advice on first time home buying?

Where do you get advice on buying a home for the first time? You know, what can you afford on your present income, necessary down payment, other options etc. A bank or real estate office? I think they give breaks for first time home buyers don't they? Any good Internet sites on the subject?

From my wife.
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Here's a few mortgage calculators and play-scenarios to get you started.

I'd also recommend a credit union if you have access to one. In my experience they're a little more interested in your success than banks are.

We bought our first house using a zero-down mortgage.
Basically the lender loans you the down payment as well as the balance, typically as two different loans with two different interest rates.
A pretty good deal with interest rates still being fairly low.

There is so much information out there. The problem is who do you believe? For most this will be the largest investment you will make.

The best advice comes from a seasoned real estate investor with a track record you trust. If you don't know one, go find one. You will be amazed at how people will help you if you simply ask.

They were newbies at one point and they ask someone for help. Most are willing to repay that debt.

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geepondy said:
Where do you get advice on buying a home for the first time? You know, what can you afford on your present income, necessary down payment, other options etc. A bank or real estate office? I think they give breaks for first time home buyers don't they? Any good Internet sites on the subject?

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Many times 1st time buyer can buy a home with no money down or a lower interest rate.

Sorry, I have to disagree with Cy. A realtor even with the best of intentions is not a financial expert. A certified financial planner or an accountant would be the safest way. [full disclosure - I'm a CPA]

But before plunking down a wad of dough to talk to an expert, check out the tons of info available on the net and the many books on the subject. Good luck!

Most community colleges will have a real estate department/program. Check with them -- they will be able to steer you and might even have a buyers course. Might also check with your city/county government. They generally handle the "first time buyer money" and will often have seminars to get you started. If you're in a large city, you'll probably have a HUD (Housing and Urban Developement) office. They will certainly have guidance and information for you. If you're a veteran, the VA has great programs to get you started. Some title companies will have programs for first time buyers.

The best place for money is a private lender --family, friend, etc. Credit union and other lending institutions (Wells Fargo, BOA, etc) are next best. I'd suggest an independent mortgage broker only if you have problem credit. I'd avoid the zero down scenario if possible. If you have to sell the property in a few years, you might find yourself "upside down" on value -- the payoff might be more that you would net from a sale. The more down you make, the better the terms (usually). The ideal on a note is to do 20% down. Much easier to qualiy, you generally can avoid escrow for taxes and insurance, and you will not have to purchase PMI (private mortgage insurance) which can add a bunch to your payment.

If you ask around your relatives, friends, etc. you may get the name of a Realtor who has handled a couple of satisfactory transactions for them. A good, ethical Realtor can lead you through the process very well Emphasis on the "good, ethical" part. I would use a Realtor only through a trusted referral. Don't just call a large brokerage and hook up with the first agent you talk to. Trust me -- I'm a Realtor/Broker.

BTW Since most real estate laws, etc are very state specific, be cautious about internet information - it may not apply to your state.

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jook said:
Sorry, I have to disagree with Cy. A realtor even with the best of intentions is not a financial expert. A certified financial planner or an accountant would be the safest way. [full disclosure - I'm a CPA]

But before plunking down a wad of dough to talk to an expert, check out the tons of info available on the net and the many books on the subject. Good luck!

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No where did I say go seek out a Realtor. I said a seasoned real estate investor. A realtor no matter how good has a vested interest in a particular tranaction.

A seasoned real estate investor would know about all about the local pitfalls including the finacial aspects a CPA would know about.

Do all your research including the internet, but when the rubber hits the road. It always better to get personal guidance from a local expert with a proven record in real estate investments. Everything you are about to do, they've done it several time over.

I would second cy's post about consulting with a seasoned real estate investor if you can find one....especially right now when real estate markets in much of the US and UK have undergone massive appreciation and may be in danger of major declines in value. Look up "real estate bubble 2004" on Google for some good reads on this topic. The Economist devoted almost a whole issue in May 2004 to the topic of the real estate bubble and the seriousness of the situation.

Property owners in Japan also will attest that real estate values can collapse in a low interest rate environment as they have been suffering from such a collapse in both property and stock shares that has been proceeding for 14 years. And Japaness interest rates have been near zero for most of that time.

As a participant in the 1980s real estate crash in Denver, I will tell you that real estate can and does decline. Denver declined around 30% in the space of a few years. We sold our home in Denver just before the bubble burst and then bought back in after the decline at much reduced prices- and came out way ahead in the homeowning game.

A realtor or mortgage provider will probably not give any advice that will compromise your willingness to sign on the dotted line.