Purchasing a New Car? Tips for the First Time Buyers

The United States is one of the largest auto markets in the world. You can find a wide variety of cars here. With such an array of options, choosing a car that matches your preferences becomes very difficult.

However, putting forth a little effort to learn about the availability of different models, purchase processes, and a handful of other items, will help you in getting the best possible deal. Here are a few items that can help you when purchasing a new vehicle.

Shop Leisurely

Spending time shopping around to see various models of cars before making a purchase will always give you better results. Once you've gathered information on the various models and their features, you'll be able to make accurate comparisons. At this point you'll be ready to visit your local dealerships and check for the vehicles.

Set Your Targets

Purchasing a car is not as simple as picking up groceries from the supermarket. So, before going in for a purchase, do your research and set a few targets.

• Search online to find what spectrum of prices you may encounter

• Choose a price range and stick to it

• Once the budget is fixed, look for the cars that match your general preferences and are within your budget (i.e. sedan versus coupe)

• Make a list of the amenities and specific options you'd like included, keeping in mind your budget and what may or may not be feasible

You'll also need to look for three major aspects when purchasing a new vehicle - the price of the car, dealers F&I (finance & insurance) policies, and the estimated trade-in value of the car.

Look for these special features

Apart from the above mentioned aspects, you should also check for special features such as:

• Fuel Economy: Choosing a fuel efficient car can save your fuel costs. Instead of going for gas guzzlers, opt for the vehicles that have higher fuel economy. Hybrid and electric cars with alternate fuel sources are also a more cost-effective choice.

• Safety: The increasing number of car accidents has raised the need for auto makers to design cars that are safer. Features such as anti-lock brakes, traction control and vehicle stability control will help in avoiding accidents. If possible, try to find the crash test rating for specific models from the National Highway Traffic Safety Administration (NHTSA) website.

• Environmental Impact: If you are concerned about the effect of pollution on our environment, it's likely you'll prefer environment-friendly models. Certain fuel efficient cars often will not only consume less fuel, but also produce less harmful emissions. Environmental scores of each vehicle can be found on the Environmental Protection Agency (EPA) website.

Test drive

Never judge a car by what you hear or read - it should always be a first-hand experience. Taking a potential new car purchase for a test drive will provide invaluable insight. Test drive gives you a chance to personally experience variables like seat height, wheel adjustment, steering feel, throttle tip-in and so on. Take at least 30 minutes to check if the vehicle is right for you.

Finance and Insurance

If you want to purchase a vehicle through financing, check all the options available with each dealer, and then make comparisons. Oftentimes competing dealers will be willing to rate-match in order to get your business. Also, since vehicle insurance is a mandatory requirement, check for any special discounts and offerings available through the dealer in order to get it insured properly.

It is always better to approach a reputable dealer in your locality in order to get the best deal. Well-regarded dealers will help you through the entire buying process, from selecting the vehicle to arranging the loan and insurance.

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Georgia Home Buyers: Now You Can Overcome Past Bad Credit With the NEW FHA Loan!

If you have been contemplating buying a home, but you have credit problems, recent changes in the guidelines for FHA loans may provide the answer to your problems. FHA loans are not actually a new program, but the guidelines have been revised so much in the last couple of years that the real estate agent or seller you are trying to work with will probably not recognize the program anymore.

The initials ''FHA'' stand for Federal Housing Administration. The FHA is a part of the Department of Housing and Urban Development (HUD). When you see HUD homes for sale, they are foreclosed homes that were financed with mortgages guaranteed by FHA.

The program was established in 1934 as part of the National Housing Act with the mission to expand credit and home ownership opportunities for borrowers who may have had credit problems, have a limited credit history, or whose bills take up a higher percentage of their total income than typically allowed on conventional loans. The FHA program accomplishes this goal by providing insurance which will pay off the loan if the borrower defaults. Because of the guarantee of FHA's mortgage insurance, the lender can take more risk approving mortgages for borrowers who would not fit into conventional loan programs. The FHA loan guidelines were designed around the needs of the first time homebuyer, but the program can also be used for a purchase or refinance by any borrower who does not already have an outstanding FHA. The standard FHA loans are only allowed for owner occupied homes and are not for purchasing investment property.

Many real estate agents and sellers are hesitant to recommend that anyone use an FHA loan because they have heard horror stories about the red tape involved. In the past, the FHA guidelines were much stricter on the property and caused the seller to have to pay higher fees than a conventional loan. Using an FHA insured loan often caused the closing to have to be delayed while arguing over seemingly silly red tape issues. However, this red tape has been almost completely unraveled over the last couple of years. If you have an agent or seller who is reluctant to accept an offer involving FHA financing, here are some of the benefits:

* Low down payment. Typically 3% of the purchase price AND gift funds are allowed for the entire down payment, closing costs and prepaid items. These gift funds can come non-profit foundations with easy qualifying requirements.

* Seller-paid contributions for closing costs and prepaid expenses are allowed up to 6% of the purchase price. This means that a buyer can negotiate terms which will result in having to bring absolutely no money to the closing!

* The borrower is not required to have any financial reserves. You can qualify for an FHA insured loan with $0 in your checking or savings account!

* Recent FHA appraisal reform eliminated the need for minor cosmetic repairs to the property before closing. The program now allows ''as is'' appraisals and no longer requires automatic inspections for termite, well or septic. These conditions were part of the red tape that aggravated sellers and agents so much in the past.

* No minimum credit score. There is an automated underwriting system called FHA Total Scorecard. If this system approves your loan, there are no further requirements to explain bad credit, pay off collections accounts or meet a set debt to income ratio.

* If the automated underwriting system does not approve your loan, the loan may be underwritten manually and the underwriter is given discretion to use common sense in the decision to approve the loan. The underwriter often does not have this discretion on conventional loans where they are not allowed to override the automated decision.

* No prepayment penalties. Many loans for borrowers with credit problems have significant penalties for paying the loan off within the first 3-5 years. These penalties prevent refinancing for a lower rate or for debt consolidation. FHA loans have no prepayment penalties. As a matter of fact, FHA loans allow for a program called streamlined refinancing. As long as you make your mortgage payments on time, you can refinance if rates go down without having to produce all of your qualifying documentation again.

All these factors benefit both the buyer and the seller. Without this program, the market for the seller's home would be greatly reduced. With the FHA insurance, potential homebuyers who cannot get approved for a conventional loan can get a mortgage with the same interest rates as a borrower with perfect credit and a low debt to income ratio! And they can buy the home with no money out of pocket!

Carl Pruitt is a 21 year veteran of the mortgage/real estate industries. He helps first time homebuyers with credit problems get into a home with no money down and low rates. Free mortgage reports and advice, including more information on FHA loans, are available at [http://24hourmortgageinfo.com]