First Time Home Buyers
Are You A First-Time Home Buyer?
Buying your first home can be overwhelming and scary, however, we promise you that by the time you sign your loan documents and your escrow closes, you will know so much about real estate that you may consider a real estate career. We help educate and many times talk you out of buying what could turn out to be a bad real estate investment as we want you to feel that your home purchase was the best decision you made. We know that there are many exciting possibilities ahead and the more informed you become about the home buying process, the easier it will be.
What Every First-Time Home Buyer Needs To Know:
The immediate first step you will need to make is talk to a lender. A lender can help walk you through the process of analyzing your financial situation and help you determine what you can afford, what debts you may have that you need to addressed before becoming eligible to purchase a home. If you have bad credit or marginal credit, the lender will be able to tell you if you can still qualify for a home loan. If you have bad credit and it was caused by events a long time ago, or you have a good explanation for the bad debt, you may still qualify for a loan.
A down payment is needed to purchase a home. The amount of down payment you will ha.ve to pay depends largely on the type of loan you take out, but plan for at least 20 percent. A lender will be able to guide you about available mortgage products, rates and down payment programs.
We recommend that you get a get pre-approved for a loan before you begin the home search process. Number one, it will tell us the range you are qualified for and number two, it makes you look at homes in that range. We can show you homes in any range, however, we caution all of our clients to look at homes in their range. We have experienced clients who had been searching for and falling in love with $500K homes, but when they went through the approval process, they found that they were qualified for a$400K home. In their “new search” they benchmarked all the homes in the $400K range to the $500k homes. Being pre-approved makes you more attractive to sellers and it will improve your chances of having your offer accepted.
You Have Signed a Sales Contract with a Seller, Now What?
You will need money to pay for closing costs. The closing costs are part of any real estate transaction and would include the following: County recorder fees, fire insurance, mortgage insurance fees, and more. As part of the approval with your lender, he/she can give you the estimated closing costs particular to a purchase so you know in advance what is required.
Do You Have Other Questions?
Richard and Kirsten have assisted many first-time home buyers successfully purchase their first home. We make the home buying process as painless and rewarding for you. We promise you that when you have purchased your home, you will know more about real estate and may even consider entering the profession. Our lines of communication are open and we use the latest social media and technology to continually making the process of buying a home as easy and painfree as possible.