First time buyers often need a lot of assistance since the home buying process is new, and a sometimes frightening to them. It’s easy to make quick (and often bad) decisions when you are purchasing a home for the first-time. In order to make sure things go smoothly, there are some things all first time home owners in U.S. should know in 2016:
Get Your Mortgage Pre Approval Letter Before Looking At Houses
A most important part of buying a home is knowing if you can get approved for a financing, and more importantly…how much you can afford to purchase. Unless you are paying cash for the house, you need to understand the different mortgage financing available, and what loan option best fits your needs. 100% USDA mortgage, FHA loan, VA loan, Conventional loan, etc. Required down payment, loan terms, money needed for closing costs – these are all important things first time buyers need to know in advance. Furthermore, home sellers and realtors will often times require buyers to get pre approved before considering any offers. Contact us at ph: 800-743-7556 to discuss all your loan options.
New Loans Before Home Buying
Taking on new debt like a auto loan, etc is a quick way to disqualify yourself for a home purchase. Your debt to income ratios play an important role on how much you get pre approved for. Thinking about adding a new $400 per month car loan? it could decrease your home approval amount by more than $50,000. Seems mind boggling doesn’t it? Buyers are often surprised how big the impact of debt can be on their home loan approval amount. If you need to make a large purchase like a auto, hold off until after your home purchase is closed.
Find A Good Realtor
Like your mortgage lender, your realtor is equally as important. Make sure you are working with a proficient realtor local to your neighborhood. Realtors play a big role in the contract and closing costs negotiations. The best part is a realtor doesn’t cost the buyer anything – so take advantage. Please reach out to us if you need a Realtor recommendation in your area, we would be happy to help.
Skipping Home Inspection
Some first time buyers may want to cut down on costs by NOT getting their home inspected. Most home loan programs actually don’t require this unless serious health or safety issues are discovered by the appraiser. While skipping the home inspection may help lower some costs in the beginning, it’s a very bad idea that could come back to haunt you later. Getting a home inspected right before or after your purchase gives you a full overview of homes overall condition, all the work that has to be done on the property. The costs of a home inspection for most entry level homes in the U.S is about $275.00 – $400.00 – small price to may when you are talking about the biggest investment of your life.
I Read It On The Internet – Must Be True?
Online websites are generally a good source when you are looking for basic information, but often, this is not all the information you should have. Make sure you have phone conversations with real people (realtor and mortgage company) so you fully understand all the details of your agreement. You need to understand the entire home purchase process before searching for properties. In addition it’s important to remember that all markets are different. What you read about a California housing market or loan program may not apply to Texas, etc.
Need to speak to a loan specialist? We are hear to help answer any questions you have about government home loans across the U.S. 7 days a week, please call ph: 800-743-7556 or just submit the Quick Contact form on this page.
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