Buying my first home - Are you getting ready to buy your first home and not quite sure what to do? You are not alone. Many Americans buy their first homes each year and are in the same situation. The first thing you need to do when considering buying your first home is to talk with a mortgage professional and get pre-approved for a mortgage. This is going to let you know how much of a home you can qualify for and afford. You will get an idea of how much your monthly payments will be as well. By getting pre-approved you will have more buying power over a home-buyer that has not been pre-approved.Next, you will want to enlist the help of a Realtor you like and trust. An experienced Realtor will not only show you homes, but will be very helpful when you are submitting an offer and negotiating the terms of your purchase agreement. Buying a home without a Realtor is like going to court without a lawyer. I would not recommend it.
Becoming familiarized with your credit history well in advance of a purchase, 1 to 2 years, is highly recommended. That way you have time to make improvements and build credit so when you apply for a loan you will have access to better rates and lower payments, as well as a number of loan programs to choose from.
One good idea is to attend several open houses. Start getting a feel for what you like, and what you don't like. Also, see what homes are selling for in your area. Once you know your local market, you are in a much better position to make an offer.
How long do you expect to be in your first home? This is an important question because most people, especially first time home buyers, move on average every 3-5 years. For example, the lower introductory rate of an adjustable rate mortgage may be smarter if you know you will be out of the home prior to the first rate change. Be sure to ask your mortgage professional to explain which loan programs make the most sense for a short term stay versus living in the home forever.
Buying a home is a very emotional experience. You will need to count on the best real estate and mortgage professionals to help keep you on the right track during this exciting journey.
Keep in mind that the average person in the US only stays in their home for less than 10 years.
There is a lot of paperwork involved in a home purchase. Most of it deals with the mortgage. Delay in getting all requested copies to your mortgage professional quickly or giving inaccurate or incomplete information can delay your closing or cause your purchase contract to expire and result in the loss of your earnest money.
If you plan on staying in your new home for awhile, make sure you have enough room for exspansion.
Buying my first home - Why should I use a Broker?
As a mortgage broker we take great pride in helping you find your first home. We will give you all of your options up front and walk you through the process.
Buying your first home can be a huge, confusing process. It is important to find both a mortgage professional and a real estate agent who will take the time to thouroughly answer your questions and address your concerns throughout the process. Doing so will greatly reduce your stress and improve your satisfation when the sale is complete.
I enjoy working with first time home buyers. I would like to share that excitement with you, while working my hardest to reduce your stress and anxiety.
You should start shopping for a mortgage months before you plan to go house hunting in case there are errors on any of your credit reports that need to be fixed. You are entitled to one free copy of your credit report every year from each of the three major credit-reporting companies; Equifax, Trans Union and Experian.
To get the most options.
A mortgage broker is able to take your current financial and credit situation and find a bank that fits your needs instead of you the consumer wasting valuble time trying to meet the banks criteria.
A broker has access to hundreds of different programs from a variety of lenders. This enables the broker to match your specific needs much more closely than a direct lender with a limited set of products available.
When buying your first home you need to make sure you get pre-approved for a mortgage loan before you do anything. Getting a pre-approval first will let you know how much you can qualify for, what price range of a home to look for, how much down payment will be required, and your realtor will need to have this generally before they will allow you to put in a bid on a home. Your mortgage broker can be a great source of information to help you with your first home loan transaction also, and guide you through the process so that you feel comfortable and knowledgeable about what is going on.
Buying Your First Home - If you are getting ready to buy your first home there are a number of things that you should know. The first step when thinking about buying a home is to sit down with your spouse and to work up a budget and figure out what a comfortable monthly mortgage payment would be for you and your family. By calculating the maximum monthly mortgage payment that you would feel comfortable making ahead of time, you will be more likely to buy a home within your price range, rather than buying the maximum amount of home that you are pre-approved for instead. Let your mortgage professional know what kind of monthly payment you would feel comfortable making so that he/she can figure out how much of a home you can buy based on that your comfort zone. One of the single most common mistakes made by first time homebuyers (actually any homebuyer for that matter) is buying too much home and stretching themselves too thin financially. This is the recipe for disaster.
Buying a first home is an exciting but often stressful event. Your mortgage broker can help you determine what size loan and terms you qualify for through the pre-approval process. Your real estate agent can then search for homes that are within your price range and meet your criteria. By being pre-approved prior to shopping you can feel confident when it is time to make your first offer. Be sure to ask your mortgage broker and real estate agent if they are experienced working with first time home buyers and if there are any special programs or incentives for you.
If you are working with skilled professionals buying your first home will be a breeze. Find a knowledgeable mortgage broker and real estate broker to guide you through the process stress and error free.
Take into consideration any future expenses you may incur: do you plan on starting a family soon? Look at your debts and see if your financial picture is set to improve as well: you may have some debts just about paid off, or are about to finish school, etc. This will let you know how to budget for a long term mortgage payment.
