First time homebuyer? Get all your ducks in a row.

Itching to buy a home for the first time? Maybe you sat on the fence while everyone else jumped it for the low housing prices – and even lower interest rates. Don’t let first-time home-buying jitters keep you from taking the plunge. Consider this. Pending home sales are up – eight months in a row, in fact. What’s it mean? Prices are going up, too. Fortunately, you can still get a sweet deal on a new crib. (The government has now extended the tax credit for first-time homebuyers until April 30th, 2010.)

But a sweet deal isn’t the only thing you should factor in when considering buying a home. Low prices and tax credits are great, but the question still remains – can you afford it?  Make sure you can swing a hefty down payment (we’re talking at least 20%) to make you a homeowner sooner rather than later. Factor in costs such as homeowner’s insurance and taxes, as well as closing costs, which can run up to 5% or more of your home purchase price. Do your research and negotiating, check out your monthly expenses and figure out how much you can afford when all is said and done. You don’t want to be house poor. And you certainly don’t want to be in the poor house.

If you haven’t scratched that itch just yet, now may be a pretty good time. Got your financial ducks in a row? Consider yourself ready for the house hunt. Money Under 30’s 10 tips for house hunting can steer you on the right path to the house of your dreams.  

Tags: Expenses, First Time Homebuyer, Homeownership