First Time Homebuyer Information & Education

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How to buy a home

How to buy a home - Buying a home is a vital part of the American dream. When you buy a home, you buy an asset that should appreciate over time. Today, there are so many loan programs available that allow you to buy a home with little to no money down. To ensure that the home you buy is a smooth process, you will need to understand how to buy a home.

A good first step in buying a home is to speak with a mortgage professional and get pre-approved. Call me today at 440-614-0130 and I can help you with this. When you get pre approved, you will find out how much home you are qualified to buy, and what your payments will be for that loan amount. Sometimes your payments will be higher than what you are comfortable paying. Remember, you can always tell your loan officer what amount you are comfortable paying each month, and they will help you figure out how much home you can afford with that payment amount.

After you have spoken with a mortgage professional and received your pre-approval you will need to start looking for the perfect home. You will know what price range you should be looking for based on your pre-approval and the payment amount that you feel comfortable making. Finding the "perfect house" does not just mean finding the home that looks the best but finding the best overall house for your budget that functions as you need it to. Sit down with your family a make a list of what you absolutely need in a house and what you would just like to have. This will help you to make a good educated decision on finding that right house.

Having a genuine pre-approval in hand while making an offer to purchase to a seller is like telling them that you are a cash buyer. The reasoning behind this is you already have the money sitting in the bank and all you need is an appraisal and the proper title work. It will give you the leverage you need to purchase more home for less money.

When buying a home you will need to view your loan options very carefully. There are many options to choose from and you should compare all your loan options to see which loan(s) are right for you. Choosing a loan is one of the most important steps in buying a home and should never be overlooked.

Even though they are not a requirement, you should absolutely get a home inspection. A thorough home inspector can save you thousands of dollars by identifying potential problems with the home you may be thinking about buying. Ask friends, neighbors, relatives if they know of a home inspector they could recommend. A good home inspection will take a few hours at a minimum.

It is in your best interest to work closely not only with a mortgage professional, but also a Realtor, when you buy a home. A Realtor will not only help you find a home that suits your needs, but will be very valuable when it comes time to negotiate a purchase agreement with the seller. If you are a first time homeowner, you can benefit greatly from an experienced Realtor's advice. If you aren't already working with a Realtor, call me at 440-614-0130 or email me dave@gofirstsecurity.com, I'd be happy to recommend one.

Until you are ready to buy, watch ads, drive by, go through open houses and keep track of the sold prices in the areas that interest you in order to get a feel for the prices and choices in the area you desire.

A first time home buyer can buy a home using various loan programs that lower the monthly mortgage payment. A lower monthly payment can help the borrower qualify for a larger or more expensive home.

Before making an offer on a home, discuss with your realtor if you have limited or no downpayment funds. Your realtor can request seller concessions to pay toward closing costs if necessary.

Consult your mortgage professional to help guide you through the numerous loan options available. Keep in mind you won't be paying a rate every month, you'll be paying dollars! Rate is only one of the factors that determines your total monthly payment.

When buying a home there are things that can go wrong. One way to prepare yourself for such an emergency is to have extra savings on hand prior to entering into contract. Somethimes there is a delay in the home buying process and the extra money may be needed for storage or worse yet a hotel room. If you have the money set aside you have options and security.

How do I buy a house? - If you are looking to buy your first home look no further. First Security Financial Services, Inc. is a mortgage firm that specializes in helping first time home buyers realize their dream of home ownership. The first thing you need to do when you are considering buying a home is to get pre-approved. This will show that you are a serious buyer, let you know approximately how much of a home your are qualified for and get you started in the right direction.

To begin the pre approval process to buy a home you will want to gather your financial information. This information includes most recent pay stubs, last 2 years W-2 forms, Bank account and other financial statements. Also write down your employers names and address's for the last 2 years as well as your dwelling addresses for the last 2 years. If you currently pay rent get the last 12 months rental checks. With this information a mortgage broker can accurately pre approve you for a mortgage to buy a house.

Before you speak to a mortgage professional, you should ask yourself this question: "How much of a mortgage payment am I comfortable with?" Based on your credit score, debt-to-income ratio and amount of other monthly obligations, you may be approved for a much higher amount than you can comfortably afford. Remember, you should never make yourself "house poor." Make sure you tell your mortgage loan specialist how much you feel comfortable paying in monthly housing costs. This will let him accurately figure out the price range you should be shopping in.

 

Information listed above is to be used for educational purposes only and is not guaranteed

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