You have decided to embark on the adventure of buying your first home. Many first timers start this approach haphazardly and, in the end, come a way with a horrible experience.
Here are a few tips to help you be prepared for the path you are about to take:
Credit & Prequalification: Many first time buyers that find a home will apply for a loan, only to find out they are denied. This can be because of credit issues or low FICO scores. Check your credit! You can obtain a copy of your credit report for free once a year at annualcreditreport.com. Once you have your report, you will be able to see your credit score and any potential errors. Before you try to repair your credit or pay off something to try raise your credit score, contact a loan officer. A good loan officer will look at your report and advise you on the do’s and don’ts. Paying off certain credit cards, etc can actually lower your credit score. Your loan officer will work together with you to form a plan. From there, you and your loan officer will be able to determine the best loan product for your situation. The prequalification letter shows what you are able to afford and show the seller you are a serious buyer.
Down Payment: Most convential loans require a 20% downpayment. If you do have 20%, this will lower loan costs and interest rates. However, most first timers don’t have the full amount. In that case, there are many programs that can help. For example, FHA provides loans with a 3.5% downpayment. Also check out the U.S. Department of Housing and Urban Development (HUD) list for nonprofit homebuying programs by state. Another thing to remember is banks like you to have seasoned money. This means they want to see that you have had stable funds in your account for 60 to 90 days. You many also use gift funds from a family member. Your loan officer will be able instruct you on this process.
Home Search: Now that your are preapproved, find yourself a good buyer’s agent. A buyer’s agent saves you time by targeting homes that meet your criteria and are in your price range. Though your agent has broad access to listings it doesn’t mean you are limited to what they find. The internet is a great tool for finding homes. Use listing sites such as realtor.com to learn about neighborhoods, schools, cost of living, etc.
Keep in mind you may have to adjust some of your desires, such as looking for a three bedroom rather than four. Is the fenced yard a necessity or not?
Finally, don’t rush the process! Buying your first home is a major milestone. By approaching it with patience and good planning, it will be remembered as one of your great adventures!
For more information on home buying, contact: Sheri Jones and Associates at 909-660-1838 Sherijones2012@gmail.com
#YourFirstHome #RealEstate #HomesBySheri
Comments(0)