So your're a First Time Home-buyer whose decided that renting is no longer an option for you. Chances are you are feeling both excited and intimidated at the same time.
That's normal. Right Now is a GREAT time for First Time Home-Buyers in Redding and Shasta County.
Buying your first home is a milestone in your life that you will always remember. Before you start your process here is a Step-by-Step Guidedesigned to help you navigate the purchase of your first home:
1. Get your Credit in Order: Go to freecreditreport.com and request a credit report from each of the credit bureaus.
- Trans Union,
- Equifax
- and Experian
Don't buy the credit monitoring program, this is pure profit for the Credit Bureaus. Review the reports for accuracy.
2. Start with Financing First. Get in touch with a reputable Mortgage Professional to help you determine how much house you can afford. There are special First Time Home-buyer loans that are designed to help you buy your first home, even if you don't have a large down payment. It's important that you understand your options BEFORE you find the house of your dreams.
The price of the home that you ultimately buy will depend on a combination of factors that include your income, your credit and your down-payment.
A good mortgage professional, who specializes in First Time Home-buyers will spend the time to:
- Review your credit report and discuss it with you.
- If there are challenges on the credit he or she will advise you on steps to improve it.
- Put together a plan to correct any credit challenges.
- Discuss your loan options with you. As I mentioned, there are excellent loans available for first time home buyers that include down-payment assistance programs, Government Backed Loans that include FHA & VA, as well My Community Loans that can give you 100% Financing.
- Your Mortgage Professional will help find the right kind of loan for you. There are multiple mortgage loan options.
- Ask you questions regarding your goals and your desires. If a Mortgage Professional only talks about the interest rate and the payment, RUN, don't walk away. The loan that you get should be designed to fit your needs and your goals.
3. Get Pre-Approved based on your Time-Line:
- 0 to 3 Months: Your Mortgage Professional should pre-approve You BEFORE you make an offer on a house. Pre-Approval means that all of you your financial has been obtained from the Loan Officer and that this information has been reviewed by the Lender. The Lender has indicated that they are ready, willing and able to extend a mortgage to you. Generally pre-approval last 60 to 90 days.
- 3 - 6 Months: In this case the mortgage professional will pre-qualify you for a loan. Pre-qualification is simply an idea of how much home you can buy. It does not guarantee that when you finally make an offer that you will still qualify for a loan.
- Stay in contact with your Loan Officer throughout the homebuying process. He or she will keep you up to date on the what is happening and help you strategize with effective mortgage planning advise.
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. Find a Realtor: Most Mortgage Professionals can recommend qualified Realtors that specialize in First Time Home Buyers or in the area that you want to live. Ask your Mortgage Professional to give you a list of qualified Realtors that you can talk to.
5. Make an Offer on the Home: Your Realtor will help you find the right home for based on your specific needs and pricing criteria. They will guide you through the entire process and act as a key adviser for you. Your Realtor will help you determine what price to offer based on the current market, write and present it to the seller. Since you have already gotten your finances in order, this is the stage where all your planning comes together. The Realtor and Mortgage Professional will work together to make sure that the Real Estate Transaction moves forward.
6. Move into your New Home: You've earned it. You did your homework and developed your team of Real Estate Professionals who went to work for you and got the job done.
Congratulations!
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Kate Bourland is a Mortgage Planner located in Redding, California. She specializes in working with First Time Homebuyers and in providing Home Equity Building strategies that provides cash management and budgeting tools to help you reach your financial goals. She'll help you find the right loan for your goals and individual needs! Contact Kate by phone at 530-244-4345.
Lending throughout California and in 42 States with a special love for the North State!
As always, your referrals are appreciated!
© 2007- 2008 Kate Bourland, all rights reserved.
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