What are the requirements to get started in the home buying process?

What are the requirements to get started in the home buying process?

Owning a home is the American dream, that most people want to achieve at some point in life. Do most people know what the basic steps are to begin? Here they are. 1. Decide if owning is for you Owning is a big difference as compared to renting. You have all the responsibility for maintenance and costs that go with owning a home. Whether you go single family or multifamily, the responsibility is there. What i would advise doing is using a online calculator to determine what a mortgage and if you can cover those costs. 2. Sit and discuss with Myself/Lender Once you decide to pursue owning a home, meeting with a Realtor (me, lol) should be your next step. I will paint the picture and let you know what will be needed to make this happen and answer the many questions a first time home buyer would have. I work with several reputable lenders who can get you the best loan product for your particular situation. You are more than welcome to contact your own lender and/or bank, but working with a lender that has a relationship with your Realtor will ensure the process is as smooth as possible. 3. Get Pre approved Once you speak to the lender and they check your finances and credit, they’ll  be able to supply you with a pre approval. Most cases they will give you a maximum amount, that fits what you’re comfortable paying monthly. Once you have this, we can start home shopping. Here are the basics needed to get a mortgage pre approval. -Credit score of above a...
5 Areas To Focus On To Add Value To Your Home

5 Areas To Focus On To Add Value To Your Home

Once you make your house a home, the value of it multiplies to you. You’ve raised your family there, likely grew in many areas of life, and it may have even been your first taste of home ownership. While all of these are great things and views on why your home is great, that doesn’t necessarily add monetary value to your home. The next buyer won’t really look at your home that way and rightfully so, being real estate transactions are a business. If you’re looking for some areas to focus on to add value in the eyes of buyers to your home, here are the 5 places to do so. Kitchen This is usually the biggest and best place to add value to that home. Whats usually the first thing people fall in love with in a home? Its usually the kitchen. While a major renovation can and will be costly, doing minor projects can get you there and to the same place. Maybe choosing to refinish existing cabinets as opposed to replacing the entire space of cabinets, can save you thousands and have the same look. Step by step is always the best way to go for somebody on a budget. Shopping around and tying all your ideas together will get it done and get that kitchen ready to make your home that much better. Bathroom Updates The smallest room can add big value to every other space in that house. Being that it is the smallest, it usually doesn’t cost too much to make it shine. Less floor space make it easier to re-tile the floor,...
The Guide To Getting a Mortgage

The Guide To Getting a Mortgage

Buying a home is no easy task, but being informed and having the right professionals helping you will make all the difference in your experience. I pride myself on educating all my clients on the entire process and what they need to do to make it happen.  If you are unfamiliar as far as what to do to get the ball rolling on obtaining a mortgage, here are a few simple steps to make it happen: DETERMINE YOUR AFFORDABILITY Before you even start working with a Realtor or house hunting, you want to determine exactly what you can afford. This will greatly help you and your agent find and target what your options are. This is a big purchase, and you want to make sure that you will get a payment that you can comfortably afford, along with your normal household expenses. You can figure this out by using an affordability calculator and also a payment calculator to determine your buying power. GET STARTED ON THE MORTGAGE PROCESS The next step will be actually speaking with a lender/loan officer. I suggest speaking with a mortgage company rather than an individual bank. Companies have more flexibility and resources for different situations, as they work with more banks. You will need the following to get the process started in working with a lender/loan officer. Personal Info– Name, DOB, Marital Status Residence History– Rent payment or all mortgage, insurance and tax figures for at least the past two years. Employment and income– Documentation showing wages and employment history for at least two years. If you receive commissions or bonuses, you’ll need two years of...
5 Steps To Start Improving Your Credit

5 Steps To Start Improving Your Credit

Credit is a vital part to success and ease in your adult life. Having bad credit will result in you having to pay more in interest rates on cars, homes, credit cards, and even personal loans. If your credit score is really low, you’ll likely come across a denial in more cases than not. So what do you need to do to start on the path to improving your credit? Here are my first 5 Steps to Improve Your Credit KNOW WHERE YOU STAND In order to solve the problem, you must first know where you stand. There are several places online that offer a free estimate of where your score is (most popularly www.creditkarma.com). Visit Annualcreditreport.com to pull a report from all three bureaus. Although you wont have a score, you will see the things that are reporting and things you need to address and have possibly disputed. START TO BUILD YOUR CREDIT HISTORY While removing bad or inaccurate items off your reports are helpful, they wont necessarily make your score rise. You have to maintain and have all credit accounts in good standing. The easiest and best type of credit to get is a revolving credit or secured credit card. They usually report monthly to all three bureaus and if used correctly will lift your score. The biggest rule of thumb is to keep every balance under 30% of the available limit. RESEARCH CREDIT OPTIONS AND DON’T JUMP AT FIRST OFFER Just because you get a card offer, don’t just accept. Most people don’t read the fine print of the card info. Be careful to see what the...
4 Things To Do While Saving To Buy A Home

4 Things To Do While Saving To Buy A Home

Being a first time home buyer, you do have some homework to do outside of just choosing a realtor. The realtor can explain and direct you to the best of their abilities in purchasing your home. Aside from the obvious step of saving money, here are 5 things you can do to make the process that much easier. Understanding the full cost of home ownership When you rent, the one payment covers just about everything (utilities excluded). You’re not fixing the broken sink, appliance, or any taking care of the grounds, its the owners responsibility. These are things as a new homeowner you need to brace and prepare for. Luckily, in most first time home buyer situations, taxes and insurance are included in your monthly mortgage due to the type of loan product most popular with first timers. If you’re pursuing a condo, you’ll have to factor in that condo fee (HOA) as an additional expense. These are all things you need to factor in and decide if you will be able to afford as well as the new mortgage. Know the Buy Vs Rent Pros and Cons Renting may actually be a better option for some individuals. Maybe somebody that isn’t completely set on living in a certain area due to career or personal factors. Some people aren’t able to own a home because they don’t have the time or funds to maintain it. Buying is becoming cheaper than renting in most areas of the country due to the tax breaks at the end of the year set for homeowners. This is something that you and a realtor...
5 Things To Know Before You Finance A Home

5 Things To Know Before You Finance A Home

Most people that buy any type of home, usually finance it. With that being said, that is the biggest purchase one will make in life. With something of that magnitude, you should be very cautious and know what you’re doing beforehand. Here are my 5 things you need to know before you make the jump into financing a home. 1. Understand the full cost of owning a home There are four parts of a mortgage; Principal, Interest, Taxes, Insurance. While the taxes are usually set, the insurance is dependent upon the property (size, area,pool,pets). Principal is the amount being financed and interest is the amount being charged to borrow that. Another aspect is your monthly bills, home maintenance, and other repair costs. Its is very important to have a mortgage that you are very comfortable with. 2. Know your credit Your credit history will determine if you ultimately get approved. By knowing where you stand credit wise, it makes the process that much easier of knowing what needs to be cleaned up and addressed beforehand. You should pull a free annual credit report and know where you stand. (Annualcreditreport.com) 3. Match your mortgage type with goals If your income isn’t going to grow over time, you will probably be in the home longer term, so you’ll want a loan with a payment that won’t change, like a 30-year fixed. Or maybe you expect your income to increase sharply within five years and you’re going to upgrade homes within that time, so you’ll want a five-year ARM, which has a much lower rate. If you don’t have a 20-percent down...

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