South Bay First time homebuyers are told a lot of things â€”
â€œSave your money,â€ their parents advise.
â€œLocation, location, location!â€ their friendâ€™s friend cautions.
Reasonable advice, for certain. But there some important elements of the home buying process which a typical South Bay first time homebuyer doesnâ€™t usually hear. Iâ€™ve listed some of the most important ones, in no particular order:
1.Â Mortgage rates you see advertised arenâ€™t usually what you get
The banner ads are everywhere online: â€œ3.2% rates!â€ â€œNo money down!â€ But the truth is, mortgage rates vary greatly. The only way youâ€™ll know what rates you actually qualify for is to go through a complete mortgage application including credit pulls and income verification. One more point to consider: online mortgage calculators, while handy, can be deceptive if you do not factor in the real cost of tax, insurance and PMI when youâ€™re looking at an FHA-loan.
2.Â Every Tiny Bit of Debt Counts
Think that $1400 left on your Visa isnâ€™t going to matter? Think again. Every iota of debt weighs in when your credit is scored. What many South Bay first time homebuyers arenâ€™t told is that when you apply for a mortgage, nearly every element of your financial history is going to be analyzed with a fine-toothed comb. All debt will be factored in as the bank figures out how much it is willing to lend. Standards have stiffened, so the earlier you dispose of even small issues, the better.Your Choice of Agent Makes All the Difference
3.Â Your Choice of Agent Makes All the Difference
Let me guess: your friendâ€™s friend also has an agent to recommend (she carpools with his sisterâ€™s next door neighbor). Thereâ€™s no reason you shouldnâ€™t interview her: maybe thatâ€™s the right fit for you. But donâ€™t just sign up with the first agent you find: this is a working relationship that can shape your familyâ€™s future. Your agentâ€™s connections, experience, and market knowledge will be key â€” and can well make the difference between your writing an offer that gets accepted or not.
(Coming Next: Another 4!)
Charles Fitzgerald Butler is a Real Estate Professional in Carson, Ca, specializing in First Time Home Buyer Programs, Distressed Sales, REO Residential and Commercial properties. Charles helps homeowners develop a second income stream so they can save their homes from foreclosure.
Charles Fitzgerald Butler can be reached at 310-684-2505 or www.CFButler.com. Prudential California Realty â€“ The Mulhearn Group is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.
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