Have your mortgage person go over the mortgage expenses (so you can budget for it) - and ask a lot of questions! Have your agent go over the home buying process with you - so you know what to expect, and prepare for home inspection, home/flood insurance and moving expenses.
The more you know upfront, the easier the process will be for you.
Best of luck,
Beachfront Realty, Inc.
The fees required to finance can quickly add up forcing a buyer to look at the value of the property being purchased versus cost. High credit scores, good down payments, plus having money to pay (not finance in to a loan) closing cost may bring far lower interest rates than average and desirable terms that make the investment worth it short and long term.
There is good reason why folks are opting out of homeownership for the time being and continue renting for a period of time. It just makes sense if you break down the numbers. Good luck to you!
1.Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
2.Develop your home wish list. Then, prioritize the features on your list.
3.Select where you want to live. Compile a list of three or four neighborhoods youâ€™d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
4.Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, donâ€™t forget to factor in closing costs. Closing costs â€” including taxes, attorneyâ€™s fee, and transfer fees â€” average between 2 and 7 percent of the home price.
5.Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6.Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options â€” such as 30-year or 15-year fixed mortgages or ARMs â€” and decide whatâ€™s best for you.
7.Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8.Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first- time buyers. Or, if you have an IRA account, you can use the money youâ€™ve saved to buy your fist home without paying a penalty for early withdrawal.
9.Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10.Contact a professional real estate agent. Find an experienced professional who can help guide you through the process.
For more helpful tips for a first time home buyer go to my website under the "buyer" tab.
Let me know if I can be of service to you. I know some really great mortgage lenders who will be very easy to work with and you will enjoy the experience working with them.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
Ive written a blog on what you need to look for when first buying a home. Check it out.
Tyler Willis, REALTORÂ®
Keller Williams Realty Intown Atlanta