Are you ready to buy your first home? For many newbies to the real estate market, buying your first home can be a long, complicated and stressful process. If you plan ahead, you’ll see how rewarding and exciting buying your first home can be. Scott will work closely with you through each step of the process so you can feel informed and empowered as you buy your first home!
STEP 1 || Improve Your Credit
Work on your credit for a while before you seek a mortgage. The better your credit score, the lower your mortgage interest rates will be – potentially saving you hundreds a month!
STEP 2 || Save for a Down Payment and Closing Costs
A traditional mortgage generally requires 20% of the purchase price down, but with recent changes lenders have made it possible to purchase a home with as little as zero down. Remember, the more money you put down ahead of time, the less interest you will have. Closing costs amount to 1 – 2% of the price of the home you choose.
STEP 3 || Determine How Much House You Can Afford
As a general rule, buyers have a mortgage of 3 to 4 times their annual income. Factor that in with your entire budget to help determine what you can afford. Scott will help you establish a budget that is within your means.
STEP 4 || Shop Around for a Mortgage
Shopping, comparing and negotiating for the best mortgage could save you thousands of dollars.
STEP 5 || Find Your Dream Home
Now the fun part comes in! Determine your wants and needs and Scott will show you homes that are a match!
STEP 6 || Make an Offer
Scott will be honest with you and help you make a reasonable offer considering factors like the length of time the home has been on the market and current market conditions.
STEP 7 || Inspect Your Home
Before closing, be sure to get your home inspected by a certified home inspector so there are no unexpected problems that aren’t visible during a walkthrough.
STEP 8 || Get Homeowners Insurance
Every property should have homeowners insurance. Policies, protection and costs differ in homeowners insurance, so you’ll want to shop around for the best package. Scott can make recommendations as to the best option for you.
STEP 9 || Sign the Papers
Congratulations, you are now a homeowner!
TEN THINGS NOT TO DO
WHEN APPLYING FOR A REAL ESTATE LOAN
1. DO NOT change jobs, become self-employed or quit your job.
2. DO NOT buy a car, truck or van (or you may be living in it!)
3. DO NOT use charge cards excessively or let your accounts fall behind.
4. DO NOT spend money you have set aside for closing.
5. DO NOT omit debts or liabilities from your loan application.
6. DO NOT buy furniture.
7. DO NOT originate any inquiries on your credit.
8. DO NOT make large deposits without first checking with your loan officer.
9. DO NOT change bank accounts.
10. DO NOT co-sign a loan for anyone.