by L.B. Woodgate

Created on: November 30, 2009

Looking to buy your first new home? Jump while the jumping is good. The federal home buyer tax credit was extended into 2010 which allows up to an $8000 credit for first time buyers. There's a little urgency though because you do have to purchase before the end of April 2010 and close within 60 days. Those eligible are singles who make less than $125,000 and couples who make less than $225,000 annually. Mortgage interests on new home purchases remains between 4-5% on 15 and 30-year fixed rates. If you're a new couple buying your first home you may be trying to find the least expensive method you can to buy a new home and keep monthly mortgage payments down. The temptation to use an

ARM (Adjusted Mortgage-rate) loan will seem appealing but I would warn against it.

With the economic uncertainties as they are, you need all the stability factors working for you as best you can. An ARM rate may give you lower interest rates than other types, making your monthly mortgage payments cost effective for you at that time but they are subject to change dramatically if inflation increases. Inflation makes the dollar cheaper so the lender needs to increase the interest rate in order to keep the value of the loan at a rate that they lent you. Your payments increase as a result so that the lender doesn't lose. If you're looking to borrow, check with a financial expert to see if an ARM loan best serves your situation.

However, I'm not here to serve as a financial guru on your new home purchase. I'll leave that up to you to find who can best guide you through this maze. I'm here to offer some guidance on the actual search, selection and construction of a new home. For those who have never been through this intimidating process before and have no one to mentor them in their search for the biggest expense of their life, it will help to know some basics. As someone who has worked in the new home construction field for the last 20 years I can share some insights that will benefit you.

The biggest fear any consumer has is "Am I buying the best product for my money?" Entailed in this question are the concerns about how good the supplier is and how dependable are they when things break. The biggest dread many people have after committing a small fortune to their new home purchase is what's known as "buyer's remorse". This can kick in for several reasons; loss in income; an added expense like a new child or an unforeseen medical crisis, or simply realizing that those mortgage

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