The thought of purchasing a home can be draining especially when you do not have experienced buyers in your circle. Wanting to buy and do not know where to start can leave you staggered and stuck. Getting advice from people can leave you confused because everyone has their own way about going about it. Buying a home will be something you would have to do in faith strictly. Some people experiences differ from others but there are a few things that will make this process a tab easier and affordable.
Save atleast 15k.
If you can save much more that would be awesome but I believe 15k is a reasonable amount. Actually, don’t think about buying until you have this amount. You should not break the bank on this investment. 15k is enough for a down payment, inspection fees, and any closing cost. You may have a lil money left over to get a paint job as well depending on your budget.
have a credit score of 700+.
Of course relators and buyers will persuade you that you do not need a credit score this high. Yes, you qualify for a loan at 620-640, buttttt your interest rate will be so high that you should just rent since it will be the same price to. The higher the credit score the lower the interest rate meaning the lower your monthly mortgage payment will be. Once again this investment should not be rushed. Start correcting your credit so that you can reap all of the benefits of being a home owner.
You cannot look at properties without a preapproval letter, its pointless. A preapproval is the process of determining how much money you can borrow to buy a home. To preapprove you, lenders look at your income, assets and credit score to determine what loans you may be able to get approved for. Find out how much you are approved for then start your search. Most realtors will not show you properties without one.
Pick an experinced realtor/Attorney.
Everyone wants to be a realtor and that’s cute or whatever but a experienced one will make this experience 10x easier I promise. Get a realtor that will work hard to find your something in your budget and something that is worth it. Get a realtor that’s educated on areas, property value, and will negotiate when writing that offer letter. Get a organized and time sensitive realtor. When buying, its literally a race on who submits what the fastest. Remember, although you don’t pay them right away, they are cut a check when you close, make sure you get one that is doing their job correctly.
What I notice is that realtors are already teamed up with attorneys they use during this process. You can pick your own but if you pick a great realtor most likely they are working with a great attorney as well.
pick your home.
Depending on what you are preapproved for , this is not always the easiest step. Everyone is not qualified for a fully renovated house. You may find a home in your budget that may need way too much work or you might find a home in your budget that is a “hot home” meaning the seller already received several offer letters for it already. Im gonna be honest, this can take months until your dream house (in your budget) hits the market and that’s ok. Be patient because the last thing you want to do is rush and buy a OK home in an OK neighborhood. I remember coming this far and giving up and my home magically appeared on the market. Everything brand new and modern and most importantly IN MY BUDGET.
I was approved for amount but I bought 30k less than that amount WHY? Job security is not a real thing. When you are preapproved they approve you based on your current salary. Life happens. Buy something that you can always afford even during a hardship.
1st time buyer Discounts/Grants.
Research programs and enroll in 1st time buyer classes that allow you to get assistance at closing . Some lenders over the assistance without you having to take a course. Closing can be very expensive. These discounts can help. Even negotiating with the seller to assist at closing is great. Closing costs alone can be around 10k with no help. Inquiring about assistance should be a must.
Dont buy anything or deposit large amounts in accounts.
Ok you’re finally getting cleared to close, but his can change if you make any big purchases with your credit card OR if you deposit money into your account that’s not consistent . Lenders run a 2nd credit report/preapproval at the end to see if everything stayed the same. This is because the process can take months. Do not buy anything, even hold off on furniture shopping do not deposit money into your account even if its a $3,000 gift form someone, they will ask you about EVERYTHING .
First Time Buyer Programs: