First-Time Buyer - First Step

Real Estate Agent with Carole Jacoby & Co. Real Estate CA DRE#00373261

The first and most important step in purchasing a home is securing financing. This is especially true today, in the light of tightening credit standards and risk-based pricing.

Before you begin your search on the internet for your dream home, it would be wiser for you to speak with a qualified lender regarding today's mortgage market.

I recommend that you chose a lender that not only offers conventional financing but is an FHA approved lender as well. Your lender should also know what local and state home-buying assistance programs are available.

Most states and even some counties and cities offer first-time buyers assistance when purchasing a home. This may be in the form of a tax credit or down payment assistance. The Housing and Economic Recovery Act of 2008 has approved a temporary tax credit for first-time buyers.

Due to the onslaught of foreclosures many changes have occurred in the mortgage industry. Actually, for the most part lenders are returning to the old fashioned practices of years ago, lending on credit stability and savings ability.

One of the most significant changes in the mortgage industry is risk-based pricing. Your credit score will not only affect your ability to qualify for a loan but will also affect how much a loan will cost.

Today's, buyer is much more savvy than in years past and that is a good thing. It is not a good thing to assume you know how much you can afford in a home or that all you have to do is have good credit.

Talking with family and friends is helpful but you will need to speak with a loan specialist to understand how the mortgage market has changed and what those changes will mean for you.

Speaking with a good lender will help you determine what price range you can afford, what you will need in available funds, how to secure a home loan, which financing option is the best for your particular financial needs as well as a plan to meet these goals.

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Fred Williams Jr.
Mid Valley Financial Services - Fresno, CA

Carole, that is such a wonderful post, thank you very much. As a mortgage lender one of the things that stood out the most in regards to your article was when you touched on local and state home-buying assistance programs. You may want to take some time and read over the following information as it will allow you to educate yourself on the many programs that are available within the state of California that offer free money to first time home buyers.

let me know if you have any questions.

Fred D. Williams, Jr.

Sep 16, 2008 10:05 AM #1
Joe A
Cupertino, CA

Carole, great advise, and well written.  Fred, your link is excellent and covers just about every downpayment assistance program for a California mortgage loan in the State.

Sep 18, 2008 11:47 AM #2
Carole Jacoby
Carole Jacoby & Co. Real Estate - Fresno, CA
Residential and Relocation Specialist in Fresno

Hi Fred;

Thanks for the great information. Hope you are making lots of new home loans now that the market is on its way to recovery.

Carole Jacoby

Mar 16, 2009 03:27 PM #3
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Carole Jacoby

Residential and Relocation Specialist in Fresno
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