Congratulations on your decision to purchase a Northern Virginia/South Carolina home!  You've made a huge step in realizing part of the American dream.  Since this is such a significant financial decision, it can create a bit of nervousness in buyers, especially those who are buying property for the first time.  But, you don't have to let it stress you out completely.  Here are a few points to ponder for first-time homebuyers:

• Historically Low Interest Rates - The interest rate for a 30-year fixed rate mortgage loan remains between 4-5%.  When you look at interest rates from 10 years ago (around 9-9.5%), the current rates are about half.  The less interest you have to pay on a loan, the lower your payment is, making it even more affordable to own a Northern Virginia/South Carolina home.
• Home Prices are Great - Since the boom of a few years ago, prices for a Northern Virginia/South Carolina home has fallen considerably.  That means that there are some fantastic deals out there just ripe for the picking.  When you add the inventory on hand from foreclosures and short sales, the possibilities are endless.
• Downpayment Requirements - Many mortgage lenders are requiring a 20% downpayment for a home.  That means, for a home listed at $110,000, you will need $22,000 as a downpayment.  The upside of this is that, with a 20% downpayment, you won't have to pay for Private Mortgage Insurance (PMI).  Money for your downpayment can come from your savings account, money borrowed from relatives (a small portion of borrowed money is allowed), retirement funds and government programs.  However, with a good credit rating, you may qualify for a Northern Virginia/South Carolina home for a much lower downpayment.  Talk to your real estate professional about which programs you may qualify for.
• Putting Down Roots - Buying a Northern Virginia/South Carolina home is a sound investment if you plan on staying in one area for an extended period of time.  As you pay down your loan, your equity in that property goes up.  Equity is the difference between what you owe and what your home is worth.  The same can't be said when you are renting a home.  Studies also show that homeowners tend to take better care of their property than renters and children raised in homes owned by their parents show a lower rate of drug abuse and teenage pregnancies than those whose parents rent and move around a lot.

If you are considering buying a Northern Virginia/South Carolina home, these are just a few points to ponder for first-time homebuyers.  Hire a trusted real estate professional to help guide you through the home buying process.  They can answer all your questions and let you know what to expect.  Feel free to contact me anytime to get you started on the path to owning your first home.

Gene Mock, your Northern Virginia, South Carolina and Washington DC real estate specialist

Originally posted on my Word Press blog here: http://northernvirginiahomes.net/2011/09/22/points-to-ponder-for-first-time-homebuyers/.