Are you a first time home buyer? Here are some helpful tips to get you started on the right path.
1. The first step before you do anything is to find out how much money you can borrow from a bank/mortgage company. Check with different lenders to see who can get you the best deal. Once you know what you can afford, then you can begin to plan.
2. Determine what you need in a home, not necessarily what you want in a home. Make a list of those needs to give to your Realtor. When you are searching for homes you will find that it is very rare to find a home that has absolutely everything you are looking for. If you stick to what you actually need, you will have better success in your search.
3. Research areas/communities that are of interest to you. Determine what things are important such as schools, proximity to shopping, restaurants, and local activities. Drive through the communities to get a feel for what they are like.
4. Learn as much as you can about the process of buying a home. Some local Realtors or lenders will offer first time home buying seminars. If you can find one in your local area it would be helpful to attend. If you cannot attend a seminar, look on the Internet for a home buyers guide such as the one at Bankrate.com - http://www.bankrate.com/brm/news/real-estate/BuyerGuide2004/
5. Select a local Realtor to help you begin your search for a home. You can search Internet sites such as Realtor.com or Homes.com, but a Realtor has access to all of the homes in the local MLS. They can provide you with information on the home, the area and answer any questions you may have. A Realtor can show you properties of interest.
6. Learn about the contract and what is involved. Your Realtor can take you through step by step the process of a contract. After it is signed by buyer and seller, it is called an executed contract. Then you would want to get a home inspection. If everything is fine with the inspection, then you can go forward towards closing.
7. Know what happens at closing. Again, a Realtor can walk you through what to expect at closing. You will need to have money for closing costs such as title search, processing fees, taxes, and insurance.
Buying your first home is an exciting and overwhelming experience. So make sure you are prepared.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL firstname.lastname@example.org
The information in this answer provided by Attorney Ranj Mohip is general information and is not intended as legal advice, nor does the attorney intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
Do YOUR homework. Check with the local Police Department re: crime stats for the area/neighborhood. Find out if there is a high percentage of rental properties in the area you're looking in. An area that is owner-occupied can be more desirable. Talk to your new potential neighbors.
Don't buy something just because it's in your price range. AND, buy something that someone else will want when you decide to move.
If you believe you've found "The One", make a point of driving the route you will end up driving on a daily basis. Here in Chicago, buyers/renters will find something on a weekend, and are often shocked at the volume of traffic they now must contend with (especially for those coming from less populated areas).
A good Home Inspector is a MUST. But, don't let your lawyer or Realtor push you to use theirs. To keep everything 'above board', find someone who is independent, and will provide you with their un-biased, honest opinion. Buying a home IS a big deal, and you shouldn't have to second-guess yourself after the fact, because you MIGHT question the objectivity of the inspector.
Bottom line: Think outside the box with regards to every aspect of the deal.... If the property comes with a washer & dryer, are they unloading old machines to make the deal seem more tempting? Well, maybe you like a gas dryer, but you don't notice that the dryer is electric.
The accompanying link can be used to compare communities on countless criteria. If you have trouble accessing it, try going to: bestplaces dot net.
After you've done your budgeting, then get pre-qualified by a lender. You'll know what you can afford even though you might be approved for more money.
I hope this helps! Good luck!
You need to contact a lender and get pre-qualified or pre-approved for a loan. This will let you know the maximum price of a home you can purchase. Buyers with a pre-approval (buyer competes the application process and is approved by the lender only subject to an appraisal of the home) are in the best position. Sellers want to know if buyers are approved or at least pre-qualified to buy before even considering an offer from that buyer. All the best in your search for a new home.
2). Find an agent (he/she will also help you with the pre-approval/shopping lender)
3). Look at as many homes as you can so that you can learn the market
3). Start writing offers (make sure you get a deal :)!!
According to the Fair Credit Reporting Act, you are entitled to obtain a free credit report once a year, or within 90 days of being denied employment or credit based on your rating. A credit report verifies such things as your name, address, social security number, job history and debt history.
The major credit reporting agencies are Equifax, Experian and TransUnion. Visit any of their Web sites to obtain your free report.
Credit scores range from 300 to 900, with the lower end indicating to lenders that you will be a poor credit risk. Generally, the cutoff point for issuing loans is around 600.
If your credit rating is questionable, it is probably a good idea to improve it before applying for a loan. Paying off debt, canceling unneeded credit cards and even consulting consumer credit counseling services are all steps you can take to get your finances in order.
The next step is to find a mortgage broker, bank or credit union that can help you secure a loan. A mortgage broker will have access to a number of programs from a variety of lenders, while banks and credit unions will only offer you their programs. In either case, shop around for the best rate, terms and loan fees (in many cases you can negotiate these down).
To make things easier and more convenient, many new-home builders have in-house lenders who can offer a preferred rate, excellent terms and numerous incentives. While it is not mandatory that you use a certain lender, it is worth at least considering, since it can translate into big savings.
Once you choose a broker, bank or credit union, you should ask to be pre-qualified, which is an initial assessment of how much you can afford and will give you leverage in your home-buying search. Prequalification is different from pre-approval, which is a more complete analysis by a lender of your ability to pay for a home as well as confirmation of how much is to be borrowed.
Now comes the fun part -- finding the home of your dreams. Once you know how much you can realistically afford, you can work with a sales associate at a new-home community and/or a RealtorÂ® to choose the neighborhood, floor plan and upgrades that work best for you and your family.
Ral Living Classic Homes Realty
Most important, do not fall in love with a property out of your buying power. Wish with your heart, but think and decide with your head. You can always upgrade down the road. Good luck and make sure to use a qualified Realtor.
~ If youâ€™re renting and have a stable job with some savings, and a credit score in the high 600 range, you can likely qualify for FHA or conventional financing at historically low rates.
~ Very few people can afford to buy their dream home when they buy their first home. In fact, according to the National Association of RealtorsÂ®, 69 percent of first-time home buyers in the United States compromised on some features of their first home. So you make some compromises, buy your first home, and start building equity. This approach takes you further and faster down the road to being able to own your dream home than if you hadnâ€™t purchased a home at all.
~ In the Book, Your First Home, all these points, and more are covered: The eight-step process consists of making the decision to buy, how to hire a great real estate agent, determining what you can afford to buy, securing the best financing, recognizing the right home for you, crafting a winning offer and negotiating with sellers, spotting serious issues at inspection, closing on your new home and how to maintain it for years to come. Youâ€™ll also learn about successful creative financing strategies and ways to overcome less-than-perfect credit.
~ FOR A COMPLIMENTARY COPY OF THE BOOK: "YOUR FIRST HOME" By Gary Keller, contact me at your convenience....
Be patient! It's a good time to be a buyer, lots of leverage in most areas. Good luck!
Once you get the loan amount approval letter....you can go look for your first home.
Good luck to you in your dream of home ownership. It is a rare opportunity right now to find yourself a great deal!
CRS ABR E-Pro CDPE SFR
Adams Cameron & Co REALTORS
Ormond Beach Fl 32174
What is covered in this 4-6 hour course is what you need to know as a first time homebuyer which starts with knowing your financial situation, including credit, assets and buying power. How to select an area that fits your budget and has the important factors you are lookings for, such as schools, proximity to work, etc. and then how to select the right professionals to help you find the Right Home at The Right Price.
Best of luck to you.
An experienced agent that is active in this market is the single most important thing any buyer or seller will do - it sets the tempo for the rest of the process. Consider that this agent will be relied upon to advise and counsel you on every step of the process; from preapproval to explanation of the HUD. The importance of selecting correctly should be obvious.
Pre-approval is critical but talking to a single lender and hearing bad news may have you think that there are no options when there might be. A good agent will also review the different options from different types of lenders; some can do things others can't, some offer options others don't......
The critical first step is agent selection - done correctly you will buy with confidence. 7 questions and 10 minutes - http://hankmillerteam.com/questions-real-estate-agents/
Good hunting -
Your Home Team Realty Group
2809 Lassiter Road
Marietta. Ga. 30062
I would be happy to help you, give me a call.
They will give you all the advice you will need to get you started and on your way to Home ownership!
1930 Williamsbridge Road
Bronx, NY 10461
The reason why this is so important is because you need to know what you qualify for before shopping so that you do not find a home you absolutely love and end up not qualifying for it. Then, when you go out and look at homes that are lower in price, they just don't appeal to you because you have been looking at more expensive homes previously and they just don't compare. Also, when you make an offer on a home, the Realtor needs to know what loan you are getting so that the contract can be written correctly and the Realtor will receive a Pre-Qualification letter from your lender that is attached to your offer. Many banks that have homes for sale that were repossessed won't even take an offer without this letter. So you could miss out on a home you find that you love because they accept another offer while you are scrambling trying to get a pre-qual letter together. One other reason is that many experienced Realtors won't start working with you until you have this. They know the turmoil it can create without it and they also don't want to waste your time or theirs. This is just being a professional. They are not trying to be difficult or rude. It is for your best interest and theirs.
You will want to make sure that you find an experienced Realtor as well as they will be better qualified from experience to protect your best interests. They will know more pitfalls to watch out for as well.
Then you will be ready to start looking for the home that is just right for you!
Brenda & Ron Cunningham
***Recognized in the Phoenix Business Journal as on of the Top 50 Realtors in the Valley (July 2010)***
The first thing you want to do is find a good lender and get "Pre-approved" not pre-qualified. Then while you're being pre-approved, find a local realtor that works with first time home buyers and will be with you every step of the way. You probably want to stay away from charging up your credit card, buying a new car, new appliances, etc. since that would ding your credit rating. Wait until you get into your new home. Happy house hunting:)
Rancho Cucamonga, CA
Ramona, ReMax Results, broker Associate, MN, email@example.com, 1-952-239-1697
Once you have this done, and your pre approval is in hand you should select a buyers agent. Again start by asking friends, or look online in your area for people with experience.
Your down payment will play a factor in the type of home you can qualify for. If you are putting down less than 20 percent, certain properties may not qualify. FHA loans on condos can be tricky, you need to run each home by your agent before you go and see it.
Pre approvals should be done in person or on phone but not onlne. Talk to an actual person.
So, in order of steps:
1. Interview and hire a Realtor. (Referrals from friends who have recently purchased is a great place to start.) Your agent should be experienced and should truly care about your housing needs.
2. Get referrals from your Realtor TRUSTED lenders. (a large, national bank/a small regional or local bank/ and a mortgage broker whom they have worked with before) Make appointments with all three to discuss your credit, and what you qualify for. (a GREAT lender will not only pre-qualify you but will discuss the reality of your monthly obligations.)
3. Let your Realtor know what you qualify for, and allow them to guide you through the rest of the process.
Enjoy the process!
Mimi Osterdahl, Founding President NWWA Women's Council of Realtors, GRI, ABR
The Muljat Group Realtors
You will definitely want to speak to a qualified mortgage lender. They will run through your income and credit with you as well as debt and length of time on the job. In our area a buyer needs the Loan Status Report to go in with their offer on a home they want.
You can speak to your Realtor for suggestions on some lenders. One thing getting pre-qualified or pre-approved before looking at homes will do for you is to save you a tremendous amount of frustration. Some people THINK they know what they can afford, but once looked at closely by a lender they find that figure may be to high, and if they have already fallen in love with a home they can't qualify for, well, this can be quite upsetting for any buyer, especially a first time home buyer that has no idea how emotional this process can be. The next problem is that when a buyer has to start looking at homes that are priced lower than where they were looking, then those homes just do not measure up to what they really wanted and can't have.
You will enjoy the process more when you know what you should be looking for!
Brenda & Ron Cunningham
602-980-3133 / 602-499-0694
Recognized in the Phoenix Business Journal (July 2010) as on of the Top 50 Realtors in the Valley.
Have a great day!
Keller Williams Realty Atlanta Partners-Buford, GA
1.The first thing I recommend is to check your credit reports. That way you won't have any 'surprises' and can start working on correcting any errors, immediately. For more information, including where to order the reports, please visit this link: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm
Obviously you want to save up for your closing costs and your down payment, but you'll also want to pay any credit cards down to under 30% of credit available. That is going to help get the best rate.
2.Talk to a lender about what kind of loan works best for your needs and how you can work towards a better rate.
Finding the right lender/loan has it's own rules. For your rights, options and frequently used terms go here:
http://www.federalreserve.gov/pubs/mortgage/mortb_1.htm There are also more great links at the bottom of the page.
3. Get a Realtor! Honestly, this is a FREE service to home buyers, so take advantage of our education and experiences...we are professionals who are bound to hold your best interest above all others, including ourselves.
While trulia is full of willing and helpful agents, I have read too many stories (even on here) of those wishing they would not have went at this alone. We are here to help you get the best rate on your home loan, protect you from Contract to closing and offer our help as needed. You will be surprised there are MANY more helpful things we can do for you.
Take this time to educate yourself as best possible. When you are ready to move forward, it will all pay off for you...litterally:0)
All the best to you!
The very first thing you need to do is find a good lender and get pre-qualified. You need to find out what your buying power is- find out what you can afford and look in that price range. Good luck to you- home ownership
Always go to two or three "lenders" to get the ball rolling. A pre-approval or a pre-Qual letter will be extremely helpful when you put an offer on a property.
From your Trusted Mortgage Banker,
Alexander Romo, Manager / Senior Mortgage Banker
Chicago Bancorp, Inc. I 300 N. Elizabeth Street, Suite 3E I Chicago IL 60607 I USA
fax: 312-628-8311 (private)