Q.  I want to buy my first home, but what do I do first?
A.  First, check your credit rating. Next, check with your local bank where you already have a banking relationship and talk with a mortgage loan officer.  Ask your lender for several mortgage options such as First time Homebuyer programs. Assuming all lights are still green, look for an experienced internet savvy real estate agent. Visit some open houses to get a feel for the process. Once you have made a choice, you will tender an offer. If it is accepted, you will need to have the home inspected, shop for homeowners insurance and sign closing documents. If this seems a bit overwhelming, it can be. However, remember you are not alone. There are many helpful and competent professionals that you have already met. You have your real estate agent, your mortgage officer, an inspector, and your local loan officer.

Q.  Should I consider points?
A.  One huge reason is that points paid in the purchase of a home are tax-deductible the year they are paid (see a tax attorney for more details). Generally, the monthly savings is greater than the short-term cost paid for points.

Q. What if the appraisal is lower than expected?
A.  One option may be a second appraisal. Not all appraisers are equal. Some are more familiar with the area than others are. Another option is Seller concessions. On the other hand, the seller and buyer may negotiate to split the difference or buyer may chose to contribute a larger down payment.