There has been a period of time when trying to keep up with the family and friends was a goal for a lot of prospective homebuyers. No one really cared about the price of the home, as long as it was very spacious and worthy of your family and friends. The times for spending a lot of money on big cars and large homes are the things of the past in our current real estate market.

That behavior and thinking of perspective homebuyers is a thing of the past. Buyers have learned to buy smartly and get more for a lot less money.

When you are buying your first home you need to look at it at a financially point of view. Some important tips to remember are, try to keep the buying process as simple as you can, be smarter when you’re buying and purchase as cheaply as possible. There are bargains out there so look for them.

Figure out what could suit your budget. The times of easy money are gone. Mortgage loan lenders and financial institutes have tightened their requirements and they are demanding bigger down payments along with tougher credit requirements.

Generally, they desire potential homebuyers to pay a maximum of 28% of their gross monthly income on home loan payments, property taxes and homeowners insurance.

Understand your marketplace. Right now more than ever before, location is extremely important right down to the neighborhood of your potential home. If you have children you need to especially research the school district that the home is in. You need to check with the local law enforcement on the criminal statistics of the area. You also need to check with the local government on any impending construction or public works projects that may increase or decrease the value of the home you’re looking to purchase. You need to research everything before making any decisions.

You could make your money work for you. Despite the fact that conditions differ by market, locate a home which is considerably less than its 2008-2010 price ranges. You may find some homes in some areas that are still on the market from 2008 that are still in fairly good condition to move in immediately.

Negotiate. Never presume the seller is even in the correct price range for what they may have as an asking price. Learn from investors and consider the price of a home from many different angles. You need to factor in what it will cost to just buy the land and build a comparable home.

Estimate what the monthly cost would be for a new mortgage loan and the real estate taxes. If you can find a home that is virtually the same home nearby find out what the home is renting for. If the rental home can be rented for a lot lower costs the seller may be asking too much for their home. This may not be true in every market but this is something to look at.

Building contractors, home sellers and banking institutions are wanting to sell unoccupied homes which gives the potential homebuyer more leverage to offer a lower price or other possible incentives. Don’t overlook bank owned properties or foreclosures that may possibly be good deals too.

The majority of first-time homebuyers don’t purchase the home they’re going to stay in. You should buy a home only when you plan on living in the home for 7 to 10 years. Staying in a home for a period of time will allow you in most cases to build equity in the home with the possibility of making a profit when you sell. Buy smart and it can pay off in the future.

Source by Don Cramer