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Smart Tips for First-Time Buyers

By Tim Bearden, CTW Features Published: January 16, 2010
You’re going buy yourself a $100,000 used Lamborghini, you might want to spend a couple hundred dollars to have a mechanic look at it to make sure someone didn’t put a Volkswagen engine in the Lamborghini and sell you a lemon.”

Agent and Attorney
Kelley says potential homeowners also should invest in the people that protect them – namely, lawyers .Without an attorney, it’s difficult to get the home inspectors report read by the seller’s attorney and desired improvements and repairs, based from the report, into the purchase contract. Lawyers also guide buyers through the legalese of the myriad documents they’ll have to sign at closing.

Getting a loan for your new home is also stressful, but it doesn’t have to be. First, shop for a lender, says Tony Garcia III, area retail sales manager with Wells Fargo Home Mortgage in Covina, Calif. Not having a lender that is willing to take the time to explain to you everything you need to know about buying a house is a problem. Garcia suggests shopping around for a lender that you’re comfortable with.

“The biggest thing is when they’re shopping for a lender is to make sure they feel comfortable with the person they’re working with,” he says. “You need to really feel a connection that that person, that mortgage consultant is really taking the time to educate them to understand the process to answer any questions they make have. If they don’t feel comfortable, walk away.”

Also, be sure to understand what the lenders are telling you, Garcia says. Know your terminology and the contract you’re entering into. Many times in the process of gathering a loan lenders may use terms that lay people may not understand. He says it’s important to ask your lender what terms like APR and closing escrow mean.

“If you don’t understand it, unfortunately you may sign something or enter into a contract that you really didn’t want,” he says.

Buying a home doesn’t have to be complicated, if it’s done right. Hire the right people, listen to the advice the experts are giving you and make sure you feel comfortable with the lending process. If you do, you will find yourself making a great investment.

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