First steps for First Time Buyers:
â€¢ Meet with a Local Mortgage Banker in person to get prequalified for mortgage financing. Thorough Prequalification includes a credit report AND review of tax returns, paystubs and bank statements.
â€¢ Get a referral to a good, local, real estate attorney. Having an attorney ready when you present an offer helps a Seller take you seriously. They will consider your offer with more interest.
â€¢ Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order.
â€¢ Work with an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.
Put together your Team of real estate professionals and shop 'til you drop!
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the first step is just as "Javier " said you must get pre-approved so you know your maximum buying power. there is no sense looking at something you cannot afford. they will tell you what you can
afford on your own, and with the additional projected income from the rental. of course if you are
lucky enough to get a steady paying tenant. Then you should do a little research and decide the
areas of interest and then meet with a realtor. then you can really start your search. because if
they find you something you want, you want to be able to submit your offer and proceed. if you have any other questions please feel free to contact me directly.
1. Figure out your buget.
2. Shape up the house you are really interested in.
3. Search on the neighborhood(s) that interests you.
4. Make appointment to show.
5. You will make decision up on the showing hours.
Good luck to your hunting your home. if you need more help, please feel free to contact me.
Keep in mind that closing costs alone; title insurance, mortgage taxes, appraisal fees, lawyers ( yours & the Banks) recording fees etc etc. alow at least 5-6% of purchase price to cover those and try to put at least 20% cash down for a multi-family not only to avoid PMI insurance (Private Mortgage Insurance) but also to get a better intereset rate. Plus the Bank will want to see that you have reserves left over.
I find it is the amount of cash that is required that controls most peoples budgets, obviously you need income, good tax returns and credit as well but even with both of those it is the upfront cash that gets most people. So once you have worked out your budget, look aggresivly to find the most experienced Broker in the neighborhood that you want to buy into. Baring in mind that by Broker I do not mean the company, but the individual agent (Broker)
Many people will tell you to get pre-approved first; for a multi family this can be a little missleading, because it will depend on the rental income, the condition of the property and often how many apartments. 1-4 family is condisered conventional finacing 5 and above and considerered commercial financing (generaly 30%+ down) but there are so many variables amongst all this depending who/what is purchasing .... it is crucial to work with an experienced Broker that sells Houses.
First check your credit, get your tax returns in order and pull all your available cash together. (Retirement funds can be used towards down payments)
All the best,
Kathryn Lilly, Broker
Realty on the Greene, LLC
I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home without getting ripped off. Follow the link below.
Best of luck!