GUIDELINES FOR FIRST TIME HOME BUYERS 

The following are some basic tips to better prepare a first time home buyer:

• It saves a great amount of time to have mortgage loan pre-qualificartion assistance to hellp determine accurately how much you can afford for a home.  With this help you don't spend a lot of time looking at homes you cannot afford to buy. 
• Generally, a family can afford a mortgage loan equal to about twice the amount of their annual household income.
• The mortgage payment consists of what is called PITI - principal, interest, taxes and insurance.  Most lenders require that the monthly payment be no more than 25% to 28% of a borrower's gross monthly income.
• When comparing the monthly costs of owning versus renting, take into consideration the mortgage interest and property tax deductions you, as a property owner, can deduct from federal income tax. 
• Closing costs related to the final phase of purchasing a home should be planned for.  With a new loan, closing costs can amount to between 1% to 3% of the sales price.  This is a cost in addition to yourdown payment . 
• A Realtor can be of tremendous help.  Choose a Realtor you are comfortable with and work with that person.  Most Realtors have accessto the Multiple Listing Service, so trying to work with several at the same time will give you duplicate and confusing results. 
• Even though you think you will keep your first home forever, choose your new home while keeping resale value in mind.  This includes thinking about location, neighborhood, location, schools, location, convenience and location.