Are you ready to buy your first home? If so, read on to ensure you are in the
best position possible.
The real estate market has changed since the time before the real estate boom
of 2002-2007. Back then, if you had a heart beat and could sign your loan docs,
you could buy a home. Typically, a home that you could not even afford and had
no right even buying. Times have changed. Banks have changed and so has the
lending industry. Today, banks are wanting extra documentation to prove that you
can actually afford the mortgage you are applying for.
Donâ€™t get discouraged! By preparing and lining your ducks up propertly, you
can stillÂ live the American Dream of home ownership.
The first thing I will tell you to do is take a good look at your credit. Go
online and print out a copy of your credit so you have a hard copy and can look
at exactly whatâ€™s on there. Not knowing your credit puts you, as a buyer in a
poor position. There could be errors on your credit that you didnâ€™t know were
there and could have repaired if you only knew. Try to check your credit every
six months before you apply for a home loan so that you may address any
Second, make sure you have enough savings for a down payments and closing
costs. As a traditional buyer, youneed as much as 20% down plus closing costs of
2-3% to buy a home. Donâ€™t be alarmed, there are FHA loans with 3.5% down and VA
( military loans)loans with $0 down.
Make sure you are working with an experienced team of real estate
professionals. This kind of purchase requires lots of information, education,
and knowledge. Having a team of industry professionals to guide you through the
first-time home-buying experience will make the process so much easier. Call Me,
Jeff Discher, with any questions at anytime.
Another helpful tool is to make a budget of what you are spending on a daily,
weekly and monthly basis. This will help you determine and see where your money
is going. From your coffeeâ€™s and lunchâ€™s to your cable bills and nights out with
your friends. By managing your budget, you can start cutting back on certain
items you donâ€™t need and putting that money into a â€œdown paymentâ€ fund for your
Start thinking of the specifics of what you want in a home. Size, area,
schools, yard, parking, bedrooms, baths, etc. Paint a picture in your head of
your perfect home so when youstart to look, you know what you want. Just
remember, when you start looking, try to pick out the top 3 things you want in a
home and focus on them. It is very rare that you find everything you want in a
home without doing someÂ ofÂ the things yourself.
Buying a home is like looking for the right relationship. It can be exciting
at first, frustrating at times, and so comforting once youâ€™ve finally found the
right one. Happy house hunting!