First Time Home Buyer Frequently Asked Questions

First Time Home Buyer Frequently Asked Questions

Buying your first home can be a tough process and be confusing. Knowing the ins and outs of whats needed and what you have to do as a home buyer is vital to the process. Whether you’re in the process, thinking of beginning it, or in the middle you should know the answers of whats going on next. Here are some popular questions and their answers: What Credit Score Do I Need To Buy A Home? In recent years things have changed and lenders are a little more lenient on credit scores. I personally work with lender whom can get you into a home loan with as low as a 620 credit score (no active collections). How Much Money Do I Need To Buy A Home?  There is really no right answer to this question as its a case by case basis. Some loans require no money down on loans and some buyers put down 20% of the purchase price on the loan. It will all depend on which route you choose to go but most first time buyers typically go between no money down or 3.5% of the purchase price down. How Long Do I Have To Be Employed To Buy A Home? Most lenders like to see 2 years of consistent employment at the same job or same field. What Documentation Do I Need To Buy A Home? 2 years tax returns, 2 years W2s, 60 days bank statements and paystubs When Is The Best Time To Buy A Home? Most will say that the best time to buy a home is the spring. Reason being is...
7 Things That Will Scare A Buyer Away From Buying Your Home

7 Things That Will Scare A Buyer Away From Buying Your Home

When one buys a home, they usually want the most for the least. Whether its the first time buyer that maybe cant afford to do the repairs, or somebody just looking for the best value, buyers are usually inclined to select the turn key property. As a seller, once you list your home, you’re entering into a competition. What about your house is gonna make the buyer choose yours? What value do you give the buyer that makes them not want to look at anything else after yours. A good buyers agent will showcase those things and let their clients know which home is the best investment. Here are 7 things that will likely scare a buyer away. Aged or Damaged Roof One of the biggest repairs and upgrades is the roof. On average a roof can be at least about $6000 to replace (depending on size of the home). Roof issues are responsible for about 40% of the insurance claims in the US. Typical lifespan on a roof is between 21-30 years. Damaged or Missing Gutters Gutters and downspouts are critical in keeping water away from pooling up around the house. Water pooling up can cause major foundation issues and water seepage into the basement and causing further damage. Old Windows and Doors Windows are another major expense that can cost you money monthly in heating and cooling costs. Broken windows may also stop a buyer from buying the house due to financing rules. Window replacement can bring 50%-80% return on your investment. Old and Outdated Appliances Most buyers usually replace their appliances anyways, but old and outdated...
4 Most Common Mistakes First Time Buyers Make

4 Most Common Mistakes First Time Buyers Make

Buying your first home can be a very exciting, nerve wrecking, and rewarding process without the right direction. So much rests on this transaction and if not done right it can cost you thousands of dollars and lots of stress. Being a first time home-buyer specialist, I make it my priority for every client to know what the process entails and how to make it easier. Here are the 4 most common mistakes First Time Home Buyers make. Not Listening to or Seeking Professional  As soon as you mention your buying a home, all your friends and family will give you their horror stories. While I wont say don’t listen, I will say that’s not exactly your fate. Being in the business long enough, I will say every deal has a bump and no two are the same. As soon as you think to begin the process, your first call should be to a trusted area Realtor (Me, lol). Reason being, we know the best ways and programs you can utilize to get the most out of your purchase. We can also send you to the best loan officers in the area and likely save you a lot of money and frustration. Not Learning the Process If you fail to plan, plan to fail. Knowing what you’re getting into step by step, will save you lots of time as well. What we call a buyer consultation is where we sit and go over the process and make sure you know what is going to happen. Again, no two deals are the same and there will always be issues that...
What will it take to qualify for a home loan with no money down?

What will it take to qualify for a home loan with no money down?

In Connecticut there are a few programs in which you can buy a home with a no money down loan (100% financing). The one which I would recommend and have done the most work with for my clients personally is through CHFA (Connecticut Housing Finance Authority). They allow you to purchase a home with no money down on the loan. You do still have some other costs that are involved with a purchase but its ideal for a first time buyer whom maybe doesn’t have the normal 3.5% or 5% down payment. So what are the qualifications for this loan? Here are the basics* Minimum credit score of a 620 (no active collections) 2 years of employment at same job or in same field/position 2 years of tax returns/W2s 60 days of bank statements and paystubs When buying a home, you do still have the buyer inspection (average of about $400) and appraisal (average of about $500). These costs will need to be paid by the buyer and are not included in the loan. The time frame on these loans is slightly longer as you have to get a bank and CHFA final approval. You can expect about a 60 day closing (from time your offer is accepted until the day you get keys).   I hope this give you a better idea of whats needed and what 100% financing entails. As always, if you have any questions or would like to begin the process, we are here to help you. If credit is an issue and you need help in that area, please hit the “Credit Repair Assistance”...
5 Biggest Credit Score Myths

5 Biggest Credit Score Myths

Your credit is the financial reputation that you carry with you throughout your adult life. Having good credit can be the determine what you drive, where you live, and sometimes where you work. Bad credit will cost you money as well whether it be through higher interest rates, not being able to qualify for a mortgage and having to pay a high rent, or generally not getting approved for credit and having to make all cash purchases. There are many myths about Credit and how to maintain and perfect it, but there are also alot of misconceptions. Here are the 5 Biggest credit score myths. 1. Checking your credit score will cause it to drop Checking your own score wont cause this because it is a soft inquiry. Only a hard inquiry (seeking new credit) will cause it to drop momentarily. There are several free services that give you a ball park credit score figure, but the most accurate report will come from annualcreditreport.com 2. You have only one credit report and score While your score is usually consolidated into one, you do have three scores. Transunion, Equifax, and Experian are the three credit bureaus and while the scores may vary, they’re usually in the same vicinity. A FICO or vantage is usually an average and many times the score used to make credit decisions. 3. You need to carry a balance and pay interest to build credit Some people believe you need to carry a balance to show lenders you’re using credit, but doing so could result in you paying unnecessary interest and could hurt your credit score...

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