If you are currently renting but considering shopping around for your first home, the time is right. The past year in real estate has led to many homes lingering on the market and a stabilization of home prices. To top it all off, interest rates on mortgages are still at all time lows. With this wonderful selection of more affordable homes to choose from, it’s not only a buyer’s market, but a first time homebuyer’s dream market too.

When thinking of purchasing a first home, there are many things to take into consideration. To keep your costs down, you may consider looking at fixer-uppers. Are you reasonably handy? Can you make some attractive but low cost improvements on a home that needs a little work? Maybe it’s as simple as patching a few walls, and some fresh paint and carpet. Maybe it’s a new countertop to spruce up that tired looking kitchen. Kitchen improvements don’t have to cost thousands, so much can be done on a shoestring. There are some great low cost Formica countertops at the home centers that will give your kitchen a whole new look on a small budget. And, old cabinets can come to life with a fresh coat of white paint.

Another option for first time homebuyers to consider is looking at condos and townhomes. This is an excellent way to enter the market. For about the same cost as doling out rent each month, you will have pride of ownership and tax benefits, while building equity at the same time. After a year or two, you may feel you need more space or another bedroom for baby. By this time, your condo or townhouse will most likely have appreciated in cost, making it easy to trade up to a larger home. This is a smart transition and a way to step up slowly.

The market this past year has certainly provided lots of inventory. This means lots of great homes to choose from. With interest rates still so low, the time to consider buying is now. These conditions may not last much longer and we may not see this kind of market again for a long time. Today, first time buyers are looking at some excellent and exciting opportunities in the real estate market.

There’s no doubt that owning your own home is one of the cornerstones of the American dream. Indeed, low interest rates over the past decade have meant that more Americans than ever before have become first time home buyers. Yet, as anyone following the news knows, the subprime lending market of the past has created a number of repercussions, including many homes foreclosing due to the inability of owners to make their house payments.

With foreclosures increasing and the hot housing market cooling, the asking prices for homes are dropping. This is great news for first time home buyers who are seeking to buy a heartland home in places like Minnesota, Iowa, and Nebraska. Indeed, mortgages in Burnsville MN - as well as purchase and refinance mortgages in MN - are readily available for first time home buyers MN.

What to Look for in a Lending Company

When it comes to mortgages in MN - whether home mortgages or commercial mortgages in MN - it’s important to find the right lending company. For example, a company that is locally owned and operated, as opposed to a national chain, is more likely to have quality lending products and a staff that is experienced in every area of lending. They are better able to find the type of mortgage that is right for you and your family, whether you’re seeking to buy a new home or refinance your existing home. In addition, local companies usually pride themselves on their customer service, so your experience with them will be more personalized.

What if Your Credit is Less than Ideal?

Before you go to a lender, you should check your credit rating. Federal law requires that each of the three major credit reporting agencies provide you with a free annual credit report. Reviewing these reports will not only provide you with your credit rating, but will alert you to any misinformation or errors contained in your report.

Bad credit mortgages come with higher interest rates, so it pays to clean up your credit before actually buying a home. A good lending company will offer credit improvement services to help you repair your credit prior to obtaining a loan. This may involve setting up payment plans to existing creditors, challenging bad reports that are on your record in error, and so forth. Having someone to help you navigate through the maze of credit reporting is extremely useful, so find a lender who can help guide you. Keep in mind, though, that even if your credit isn’t pristine, you can still obtain a mortgage.

Fulfilling Your Dreams

With the right mortgage, first time home buyers can truly own a piece of the American dream. It’s enormously satisfying to pay a mortgage payment instead of rent every month, knowing that you’re slowly and surely building equity. That equity lays a foundation for your financial future and that of your children that will truly make you rest easier.