First Time home Buyer Basics: Click HERE for FAQ Section
STEP 1 Analyze
How much can you afford to pay each month? How much more than your current rent is comfortable? A lender will tell you what they will lend to you but you should know what monthly payment fits into your budget.
STEP 2 Save Money
You are going to need at least a 3.5% down-payment, on a $200K home that is $7,000. If you qualify for low-income down-payment help, you can avoid this, more information, CLICK HERE.
There are other fees you may have to have, for example, 3% ($6,000 for our example) for closing costs and around $400 for an inspection. Note that some of these fees can be paid by the seller, so if you don't have excess cash reserves, it does not mean you can't buy a home, please contact us for more information about 'Costs' of home buying.
It is important to check your credit out at this point. If you have poor credit it can take some time to clear this up. Don’t worry though, the sooner you start the process the more you can do to make it better. A lender can help you with clearing credit.
(Bad Credit = Higher Interest Rates On Loans = More costs to You)
STEP 3 – Get Legit
Meet with a lender you trust. This actually could be Step 1. You MUST meet with a lender to get pre-qualified. It is the only way you know if you can get a loan based on your finances. It will give you peace to know you are qualified and most sellers will not look at offers that do not come with pre-qualification letters.
STEP 5 Find the Perfect Fit
Make an appointment with your Realtor, preferably Sus and Erin. We will meet with you to formulate a plan. We talk with you about your needs, wants, likes, dislikes. We help you sort through neighborhoods that have the attractions you desire (night life, grocery stores, schools, parks, bike trails…) We explain the whole home buying process.
STEP 6 – The Fun Part
We go on home tours! As many and as often as you like. Some buyers find a home fast, others can take a long time, it's up to you and there should be no pressure! It should be fun. We analyze all properties you like against comparable sales to make sure you are getting a good deal!
STEP 7 – Offer
Once you have chosen a home, we guide you through the process of writing and offer. Again, we make sure you are getting a good deal and include all protections possible for you in case the home fails inspection.
STEP 8 – Process to Closing
From offer to closing, the process takes about 30-45 days, that timeline is negotiable between you and the seller (like almost everything in the transaction). We are there to manage the deal the entire time. You will have a home inspection, you will apply for home insurance, but most of that time you just wait on the loan process. You sign your loan paperwork few days before closing.
STEP 7 – It's Yours!
You move in on the day of Closing, we will deliver keys to you and make sure everything went as planned. Then we celebrate!
******************* Click HERE for Home Buyer Classes ********************************************************