You can plan on a short sale taking about 3 to 4 months to close, regardless of what you hear. Some close sooner and many close much later than that, especially if you're trying to buy a Bank of America HAFA short sale, for example. Regular Bank of America transactions are OK. The HAFAs leave much to be desired because they are outsourced.
But your very first step is to get pre approved so you know the price range to concentrate on. Plus, you'll need that pre approval letter to make an offer. Most agents won't show you homes unless you have a pre approval letter as well.
I suggest you call Dan Tharp at Comstock Mortgage at 916 257 1470 or email him at firstname.lastname@example.org.
Then, you can check back with me or any of the other Sacramento real estate agents you find on Trulia.
Lyon Real Estate
All of us lenders offer just about the same products and pricing. The end result is that 99% of all loans end up being serviced by 1 of about 5 national lenders and will fall into pools for either a Fannie Mae, Freddie Mac or Ginnie Mae (VA/FHA).
Documentation is key to getting your loan approved.
I can certainly walk you through this process.
If you are a first time home buyer with less than a 20% down, you will probably be looking at an FHA loan which requires a 3.5% down payment. Closing costs and prepaid expenses for your loan can be paid via a lender credit (from my company for example to you) and/or a seller credit (negotiated with your sales contract by your realtor).
If you are still strapped, we can also look at down payment assistance in the form of CHDAP (California Housing Down Payment Assistance), which I can also set up for you.
CHDAP is a junior lien that closes behind the FHA mortgage. The rate is 3.25% and is simple interest & deferred for 30 years or when you refinance or sell the property. No payments are required on the CHDAP. It is a "silent" second. However many do prefer to pay the yearly simple interest on the CHDAP but it is not required.
If you would like to speak offline, I would love to meet with you.
I have been in lending since 1994 and funded over $400MM in personal loan production.
My cell is 916-813-4003 and you can email me at email@example.com
Go Chat with a lender first.
Then talk to an agent and get set up on MLS auto emails.
Then pick out some homes to see.
average time frame from pre approved to moved in is 3-5 months
Harold Sharpe - Broker
So Cal Homes
California Department of Real Estate Broker License # 01312992
You've actually already passed the first step which is Desire. Now that you know buying a home is something you want to do, the next step is Feasibility, and there is no better place to start than talking to a lender. They can help you make a plan to reach your goal and help you understand what your budget is and what programs will fit your situation. Do meet a lender face to face, I feel this is very important for a first time home buyer. If you don't feel they are answering your concerns go see someone else.
Once you have your budget and know what type of loan you are getting, then you can go to step 3, Action! You can start looking at homes and your agent will help you to find a home that will hopefully fit the loan program you are using, because not only do you have to qualify the home does too. It will have to meet the lenders standards in terms of condition, market value and that is where a skilled and knowledgeable agent will be a great help to you.
In the meantime you can start researching areas and begin to narrow down where you want to be.
Good luck and Happy House Hunting!
I think, my esteemed realtor colleagues have already given you a lot of valuable info.
I would like to refer you to this url :
that has information on incentives given by counties for first time buyers. Often times, they offer silent second loans with low to zero interest rate.
You should definitely ask for 3-4% seller's credit for closing costs, however, you should add this to the purchase price. It is a competitive market right now, with many buyers and very little inventory. You will be competing with other fha buyers, conventional as well as cash buyers.
You will need to build your team of people who will look at your best interests, not how much they get paid after the sale is done.
From a financial standpoint, "dumping" every penny is not the wisest because you need a cushion for emergencies.
Briefly regarding downpayment:
In 2008, President Bush basically cut all funding to any downpayment gifts that needed involvement from the seller, so these gift programs are no longer available. Each county and city currently has provisions for grants to homebuyers; some go through nonprofit oganizations. Guidelines vary by locale.
could be 0% for VA check VA
3.5% for FHA
10% to 20% for conventional, depending on lender and type of property
Getting all your ducks lined up by getting qualifiedis the first step. That is good that you have saved $12K. There are several first time home buyer programs out there. We have a lender who knows about these programs and if they are presently funded. Getting qualified means have a good credit score, money to put down and a stable job producing income. We have a good lender who we have worked with for twenty five years. Picking a company which has their own underwriting is inportant.
The other thing is that if you pick a short sale property...they could take some time to close. Starting to look can start right now so you can get an idea what your dollar will buy. We set up email searches
for our client so the can look at property via the internet. We also send you our News on the Home Front newsletter which lets you know how the real estate market is doing as well as economy.
We hope this answers your questions...at least...initially. If you need our help let us know.
Our Best Regardsw,
Don and Deborah Richier
Ad-Vantage Point Realty
This the time to consult with a lender, work with someone directly, and put together a financial game plan so you will be ready in December.
One of the most important first steps is to talk to a lender. After you have gotten a few names, just call a couple of lenders up, and see who clicks with you. Who delivers the information you need to you that is both clear, and not condescending. Even though you are not buying for six months a good lender can give you an idea about what price range you should look in, what your payments will look like, do you have to do some credit repair?
After this you can start looking for a Realtor. Again, call 2 or 3 up, and see who would fit into your team.
It is good to start early. You can get a feel for the market, know your limits, understand the process, and then when you find the right home, you will be able to move quickly and with knowledge.
If you want to move into your new home by December, then you might want to get started no later than late August-early September. With the current market conditions of limited inventory and multiple offers on many of the homes for sale, it could take you 2-3 months to locate your perfect home. Also, you will need about 30 days, sometimes longer for the escrow period.
You should consult a lender ASAP to look into your credit, employment, and financial picture so that you have time to work out any bugs now and be ready to roll in a few months.
Feel free to send me an email if you want to discuss this further to Sactownsheila@hotmail.com
Sheila Smith, Realtor
Thompson-Brown Real Estate
Let me know if I can help answer any more questions.
DRE # 01326917
Congratulations on looking for your first home, it will be an exciting experience! The first step is doing your research, which you are clearly doing since you asked this questions. While you are doing research you should pre-qualify for a loan. This is important to do early as the loan officer will check your credit and offer advice if you need to improve your score. Improving your credit score can take months so it's good to start early with that piece. Also your credit score will affect the interest rate of your mortgage so it's good to have a high credit score to get a lower interest rate.
Once you have the pre-qualification letter you will have an idea of what price range home you can borrow from the banks. I always recommend to my clients to figure our your own budget and make sure your mortgage payment will be something you can afford.
There are several types of loans out there and a loan officer can explain the different ones. If you have 20% downpayment this is called a conventional loan. FHA has some good loans programs where you would only need 3% downpayment. It's awesome that you already have funds saved up. I also recommend having a seperate emergency savings. It's great to put a downpayment because then your home already has some equity.
I could go on and on about the home buying process but I'll stop here for now. I would be happy to work with you and educate you about the home buying process, feel free to give me a call at 530-217-9537 or send me an email, firstname.lastname@example.org
Have a great day and good luck!