Being prepaired to buy a home/ info you should know!

By
Managing Real Estate Broker with John L Scott #86099

Home Buying Process

If you are a first-time homebuyer or haven't bought a home in a while, this guide will offer valuable information about buying a home.

Gather the information you will need to qualify for a home mortgage

 

Before you can buy a home, you will need to secure financing. Be ready to provide a mortgage lender with the following information:

Income and Employment

  • What is your current income?
  • Are you employed?
  • Do you have a history of steady employment?

Down Payment

Your lender will ask how much money you have available for a down payment. A down payment of 20 percent or more of the home purchase price demonstrates your commitment to long-term homeownership and provides you with immediate equity in a new home.

Credit History

Your lender will review your credit history - how well you've paid your bills in the past - by reviewing your credit report. The lender will consider how much you owe on credit cards, car payments, student loans and other debt. The lender will also review your ability to pay property taxes and other expenses of homeownership.

Escrow Accounts

Your lender may suggest that you set up an escrow account. With an escrow account, you pay a fixed amount each month in addition to your mortgage payment to an account maintained by the lender. The lender then draws on that account to pay property taxes and homeowners insurance as those bills become due. Escrow accounts ensure that money will be available for these payments.

Find a lender to get preapproved for a mortgage loan

 

Remember that you are investing not just in a home but also in the mortgage loan that will finance your home. Talk with several lenders and shop carefully for the best deal, including loan terms, interest rate and fees.

The lender you choose will review your financial information and explain the preapproval process. While preapproval is not a mortgage commitment or guarantee, it will provide guidance on what you can afford to spend on your new home. Having a preapproval letter to show to a seller demonstrates that you are a serious buyer. When you are ready to buy, it will shorten the time it takes your lender to complete the mortgage application process.

Make sure your lender explains all loan fees - the up-front costs of originating, processing and closing the loan.

Select your new home

 

With your mortgage preapproval in place, you are ready to begin your search.

Contact me

Daryl Datus

360-801-6373

www.daryldatus.com

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Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
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This is a good list to give new buyers.

Jan 23, 2011 11:44 AM #1
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Joe Kenny
Realty Executive Midwest - Darien, IL
Better Than Your Average Joe

It's a good list for us Realtors too as a refresher.

Jan 23, 2011 11:47 AM #2
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