First-time real estate buyers in the Bennington, Vermont area have an advantage in today’s market – they don’t have to worry about selling their homes before buying another. And homeowners are thrilled to sell to first-time buyers – they can move on to their new home and continue to stimulate the market.

If you are a potential buyer, you still need to consider a few golden guidelines:

• Location, location, location. Although recent studies have predicted a loss of equity by 2012 in metropolitan areas, government moves to reduce loans have changed those figures – and in fact, don’t hold true in smaller, less volatile areas such as Bennington, Vermont.
  
• The old school rule of spending no more than 28% of your pretax income on your home is back – that includes mortgage, taxes and insurance.
  
• Work on your credit score – you will need 720 or more to qualify for the best mortgage rates.
  
• Be bold when it’s cold. Prices generally are more negotiable in winter, and a $7500 federal tax credit is available for first-time home buyers until June 30, 2009.
  
• Prepare to stay in your new home for a decade. If prices drop another 10 to 15%, your investment pocketbook won’t be challenged if you are in it for the long term. The National Association of Realtors states that typical first-time buyers plan to stay in their home for at least 10 years.
  
• Recline through a decline. The bottom line is that real estate is still a solid long term investment, so equity and pricing valleys will eventually even out.

Bennington VT