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Replies (5)
- Sharon Sapp, "Real Estate Lady1"
- Contributions:241
The first thing you should do is speak to a lender. See if you pre-qualify or can get pre-approved for a mortgage and how much. Then, make yourself a list of "must haves" and "like to have" and list things you'd like in your home. It would be a good idea then to interview some Realtors for someone you get along with and can trust and find a home under the amount you're qualified for. Since you are a first time home buyer, if you get an approved contract by 4/30 you may qualify for the first time home buyer's tax credit. Speak to your Realtor about it. I'd do that pretty quickly.
Best of luck.
Best of luck.
- Roseann Annis, "roseannannis"
- Contributions:54
Hello, Grazer!
Before going any farther, make a list of reasons why you are considering the home purchase. Project where you would like to be five years from now. For example, could you see yourself living and working in and around where you are currently residing? One of the stipulations of the First-Time Home Buyer Tax Credit is that you reside in the home a minimum of three years. It typically takes five years to offset your initial closing costs and to build sufficient equity to buy your next move-up home. On the bright side, historically low interest rates and value-priced homes are making it much easier for today's home buyers to build home equity.
Your very first step would be to find a mortgage lender who comes highly recommended. Lending institutions come in many forms: brokers representing multiple-lenders, credit unions, mortgage companies, banks, and savings and loan companies. You will need to give permission for this lender to pull your credit score. If the combination of your cash on hand, income, debt-to-income ration, and credit score report is favorable, the lender will issue you a mortgage pre-approval letter for $XX which you will give to the REALTOR whom you hire to represent you in your home search and ultimate purchase. (It costs you nothing to hire a professional REALTOR, for sellers commit to paying Y percentage in broker commisions when listing their home.) Your lender will give you a Good Faith Estimate (GFE) of costs relating to purchasing a home in your target price range. You may qualify for a higher monthly mortgage amount than meets your comfort level. It's important to be open and honest with the lender and REALTOR and to communicate your specfic needs, preferences, and goals related to your home purchase.
Some common pitfalls of first-time home buyers include opening and/or closing credit cards just before obtaining the mortgage pre-approval and/or making application for the mortgage. Along these same lines, buyers should avoid making any big purchases while working toward buying a home.
Please write back if you have any other questions. Good luck to you!
Before going any farther, make a list of reasons why you are considering the home purchase. Project where you would like to be five years from now. For example, could you see yourself living and working in and around where you are currently residing? One of the stipulations of the First-Time Home Buyer Tax Credit is that you reside in the home a minimum of three years. It typically takes five years to offset your initial closing costs and to build sufficient equity to buy your next move-up home. On the bright side, historically low interest rates and value-priced homes are making it much easier for today's home buyers to build home equity.
Your very first step would be to find a mortgage lender who comes highly recommended. Lending institutions come in many forms: brokers representing multiple-lenders, credit unions, mortgage companies, banks, and savings and loan companies. You will need to give permission for this lender to pull your credit score. If the combination of your cash on hand, income, debt-to-income ration, and credit score report is favorable, the lender will issue you a mortgage pre-approval letter for $XX which you will give to the REALTOR whom you hire to represent you in your home search and ultimate purchase. (It costs you nothing to hire a professional REALTOR, for sellers commit to paying Y percentage in broker commisions when listing their home.) Your lender will give you a Good Faith Estimate (GFE) of costs relating to purchasing a home in your target price range. You may qualify for a higher monthly mortgage amount than meets your comfort level. It's important to be open and honest with the lender and REALTOR and to communicate your specfic needs, preferences, and goals related to your home purchase.
Some common pitfalls of first-time home buyers include opening and/or closing credit cards just before obtaining the mortgage pre-approval and/or making application for the mortgage. Along these same lines, buyers should avoid making any big purchases while working toward buying a home.
Please write back if you have any other questions. Good luck to you!
- agentblu15
- Contributions:353
to add to what the above poster said-- speak to SEVERAL lenders, so you can shop around for the best rates/terms, etc. Once you get an idea from them of what you CAN qualify for, compare that to your own finances, debts, lifestyle, etc, and decide on your own what you're comfortable spending. make sure that you leave yourself some spending room for things like utilities, repairs, etc, along with unexpected expenses. DO NOT trust the lender's estimate of what you can afford-- you need to make that decision on your own, and in most cases, the amount they're willing to approve you for is MORE than what you can comfortably afford. Then make your list of must-haves and like to haves. Then, pick a realtor (you may want to talk to several to see which one you like best). Go over your list with the realtor, to give them an idea of what you want. Then start looking at houses--either online, or in person with the realtor.
- Grazer
- Contributions:2
Thanks SO much for the insight. Some of the information i have heard before but it gives me a logical list of things that i will need to do.
- Delia Peterson, "Delia Peterson"
- Contributions:99
Hello Grazer!
The best way to start the process of buying your new home is to not overplan on your own. There is a plethora of information on the home buying process availble through the internet, friends, family, co-workers and all. Enough to become extremely overwhelming. As a home buyer with a full time job, and a busy life you only need to focus on two of the biggest decisions you're going to make.
Your first biggest decision is who you will work with to finance your new home purchase and provide you the most beneficial service from the pre-approval through the end of settlement.
Your second biggest decision is who will best represent your interest and provide you with the consultation and education necessary to allow you to make the best decisions for your specific situation.
The mortgage lender and real estate agent you choose to represent you will have the skills, training and experience you need to guide you by the hand through the home buying process from beginning to end. Both real estate professionals should certainly educate, advise and guide you through the many details involved with purchasing real estate. It will serve you best to be brutally honest with both professionals in order to get the best service possible.
2010 will also bring about new changes in the real estate industry with the new GFE (Good Faith Estimate) and the revised HUD-1 (Settlement Sheets). The changes are being made to protect consumers like yourself. These changes will affect how soon lenders and realtors will be able to get you to settlement. I strongly advise that you ask your lender and real estate agent about these changes and not waste any more time than you need to in order to ensure an executed Agreement of Sale no later than April 30, 2009 and settlement before June 1, 2009.
Good Luck!
Where do I start to explore the possibility of buying a house?
Where and what do I do to start a proccess and not waist anyones time along with my own time!
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