Home Buying 5000
Even if you are a first-time home buyer or haven’t bought a home in a while, you already know the basics. Think of this guide as a refresher course to offer valuable information about buying a home. We like to call it – Home Buying 5,000 as you can see from our title (Email us and we’ll tell what the 5,000 stands for!).
First thing you need to do is gather the information you will need to qualify for a mortgage and speak to a lender. We recommend this guy!
There is a list of documents you will need to provide before you can secure financing. Be ready to provide the following information to our guy:
Income and Employment
What is your current monthly income?
Are you employed? How long have you been with your current employer? Do you like them? (Just kidding – but if you want to vent our guy will listen!)
Do you have a history of steady employment? Are there any gaps more than one (1) month long?
Do you have money for a down payment?
Your lender will ask how much money you have available for a down payment. A down payment of 20 percent or more of the home purchase price demonstrates your commitment to long-term homeownership and provides you with immediate equity in a new home.
FHA only requires 3.5% down and there is still a 100% loan program available to certain areas! Our guy will be able to tell you where they are…or you can follow this link and search on your own.
Credit History
Our guy is going to have to pull your credit just like every other lender in the free world! He will quote you some rates but they are just guesses. Your credit history is going to explain how well you’ve paid your bills in the past. He will pass this information on to the lender. If you have so-so or less than perfect credit don’t worry. We have several options for you and we are sure our guy will give you some TIPS to improve your credit. The lender is going consider how much you owe on credit cards, car payments, student loans and other debt. They will also review your ability to pay property taxes and other expenses of home ownership.
Escrow Accounts
Once our guy has found you the perfect loan program the lender will require that you set up an escrow account. With an escrow account, you pay a fixed amount each month in addition to your mortgage payment to an account maintained by the lender. The lender then draws on that account to pay property taxes and homeowners insurance as those bills become due. Escrow accounts ensure that money will be available for these payments.
Remember that you are investing not just in a home but also in the mortgage loan that will finance your home. Talk with several lenders and shop carefully for the best deal, including loan terms, interest rate and fees.
The lender you choose will review your financial information and explain the pre-approval process. While pre-approval is not a mortgage commitment or guarantee, it will provide guidance on what you can afford to spend on your new home. Having a pre-approval letter to show to a seller demonstrates that you are a serious buyer. When you are ready to buy, it will shorten the time it takes your lender to complete the mortgage application process.
Make sure our guy explains all loan fees – the upfront costs of originating, processing, and closing the loan. If he doesn’t let us know and we will have a talk with him!
Select your new home – This is the best part!
With your mortgage pre-approval in place, you are ready to begin your search. Look at as many homes as it takes to find the perfect home and make an offer.
You can check online, your local newspaper, and definitely Pluto Agave Sells Homes for houses in your area for sale. A real estate professional can help you find a home that meets your needs and your budget. A licensed agent has access to the Multiple Listings Service (MLS) which generally offers the most comprehensive list of homes for sale. The best part about using a licensed Realtor is that the seller pays their commission! They work for YOU and YOU don’t have to pay them (Well not directly – you pay their commission when you close on a home but they won’t charge you upfront!).
In many communities, foreclosed homes offer an affordable home buying option. You can search Fannie Mae’s foreclosed properties at HomePath.com. Many of these homes offer flexible HomePath financing, which is available only on Fannie Mae homes – and YES our guy can do those as well.
